Rent and Reality
Assessing the Impact of the Affordable Rent Act on Mid-Market Rental for Housing Associations
J.S.J. Laman Trip (TU Delft - Technology, Policy and Management)
J.M. Kooijman – Mentor (TU Delft - Organisation & Governance)
M.E. Warnier – Graduation committee member (TU Delft - Multi Actor Systems)
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Abstract
The Affordable Rent Act (Wet Betaalbare Huur), enacted on July 1, 2024, establishes regulations on rent control in the mid-market rental sector. This is accomplished by establishing maximum rents in the mid-market rental sector based on the quality of housing, as determined by the WWS points system. The study critically examines the impact of this legislation on the governance of housing associations in the West-Brabant and Tholen regions through a combination of literature review and semi-structured interviews with key stakeholders.
The findings are threefold: First, the Act has a limited direct impact on housing associations, as their rents typically fall below the new limits. Second, the enforcement of the WWS points system introduces significant administrative challenges for housing associations. Third, the anticipated exit of investors from the mid-market sector may increase demand for social housing, thereby placing additional pressure on housing associations.
This study addresses a gap in the existing literature by focusing on the effects of the Affordable Rent Act on housing associations, as previous research has primarily concentrated on investors. The study concludes with policy recommendations, including the establishment of a central housing agency, the creation of a mid-market rental fund, and a continued focus on social housing by housing associations. The recommendations are designed to assist housing associations in navigating the dynamic housing market.