Rent subsidy: what is changing in 2025?

At the end of 2024, the Senate approved two acts that will change the rent subsidy system. Some of these changes will take effect this year, while others will not come into force until 2026.

The two acts, now approved by both houses of Parliament, are the ‘Rent Subsidy Simplification Act’ and the ‘Rent Subsidy Act for Improving Purchasing Power and Simplifying the Scheme.’ Through these acts, the government aims to improve people’s purchasing power and make the administration of the rent subsidy system easier.

Changes as of 2025

The following changes will take effect in 2025:

The rent subsidy will decrease less sharply when your income rises.
The rent subsidy for seniors and non-seniors will be calculated in the same way—which is not currently the case. If you are under the state pension age (AOW age), this will result in a slightly higher rent subsidy.
If you do not live alone, have not yet reached the state pension age, and pay a rent above the so-called ‘capping threshold’ (*aftoppingsgrens*), you will receive a slightly higher subsidy. This ensures that households consisting of two or more people are treated the same as other tenants whose rent exceeds this threshold.

Changes as of 2026

Further changes will take effect in 2026:

Eligibility for rent subsidy even with high rent

Starting in 2026, tenants with a low income and a rent that exceeds the standard rent limit will also be eligible for a rent subsidy. Not based on the full rent of a private-sector or mid-range rental property, but rather on the portion of the rent up to the social housing threshold.

 

Full subsidy available from age 21

Currently, individuals under the age of 23 can only receive a rent subsidy for a property with a low rent—specifically, one that falls below the "quality discount threshold" (*kwaliteitskortingsgrens*). This will change in 2026: from age 21, young adults will be treated the same as other adults regarding rent subsidies.

 

Lower "base rent" leads to a higher subsidy

The "base rent" (*basishuur*)—the portion of the rent that subsidy recipients must pay entirely out of their own pockets—will also decrease starting in 2026. This reduction will increase the subsidy amount by nearly 8 euros per month.

 

Subsidizable service charges to be phased out

As of 2026, the subsidy for "subsidizable service charges" will be discontinued. This refers to costs in residential complexes for items such as a caretaker, or the lighting and cleaning of communal areas. Currently, it is still possible to receive a subsidy for a capped portion of these costs, but from 2026 onwards, the rent subsidy will apply only to the "net rent" (*kale huur*—the rent excluding service charges and utilities).

 

Source: www.woonbond.nl

 

What is the "capping threshold" (*aftoppingsgrens*)?

The "capping threshold" is a term used in the context of rent subsidies. If your rent exceeds this limit, your subsidy is "capped"—in other words, reduced. What does it mean for a tenant's finances if their monthly rent is, or becomes, higher than this threshold?

Every household eligible for a rent subsidy is required to pay a portion of the rent themselves. This (income-dependent) amount, which the household must cover, is known as the "base rent" (*basishuur*). Rent subsidy can be applied to the portion of the rent that falls between the base rent and the "capping limit" (*aftoppingsgrens*). You receive a 100% subsidy for the first segment (up to the "quality discount threshold" or *kwaliteitskortingsgrens*) and a 65% subsidy for the second segment (up to the capping limit). If the rent exceeds the capping limit, you must pay a significant portion of the rent yourself. The capping limit is set annually by the government. In practice, there are two different capping limits:

 

Low capping limit

This limit applies to one-person and two-person households.

High capping limit

This limit applies to households consisting of 3 or more people.

 

Capping limit 2026

Low: € 713.02 | High: € 764.14

Valid in 2026
Subject to change on January 1, 2027

 

Initial rent exceeds the limit

For families with a minimum income, a rent price above the (high) capping limit is unaffordable. Anyone moving into a home with a rent above this threshold is forced to pay an excessively large share of the rent out of their own pocket—a cost that is virtually impossible to manage on a minimum income. For single-person households with a minimum income, a rent exceeding the (low) "capping threshold" (*aftoppingsgrens*) is also very high. A disproportionately large share of the rent must be paid out of one's own pocket.
For households that do not receive a rent subsidy—because their income is slightly too high to qualify—a rent above this capping threshold is also substantial. For those with an income just below the limit for social housing eligibility, the rent may still be technically affordable, but a large portion of their income will inevitably be spent on rent.
Rent for current homes may increase

Due to annual rent adjustments, the rent paid by an existing tenant may rise above the capping threshold. What happens then?

Tenants who receive a rent subsidy retain their entitlement to that subsidy. However, their disposable income will decrease if their rent exceeds the capping threshold. Only 40% of the portion of the rent that falls between the capping threshold and the maximum rent subsidy limit is covered by the subsidy. For the portion of the rent between the "quality discount threshold" (*kwaliteitskortingsgrens*) and the capping threshold, that figure is 65%.
Source: www.woonbond.nl