What does the government’s collapse mean for the housing market?
In early June 2025, the Dutch government collapsed, once again as a result of political disagreements over several major issues. One sector directly affected by this political uncertainty is the housing market. Although a caretaker government may in principle deal with “ongoing business” , many important policy decisions and legislative proposals are temporarily put on hold. What does this mean in practice?
The current situation
Following the collapse of the government the Netherlands entered a caretaker period. This means the outgoing cabinet is limited to handling ongoing business and cannot take major new decisions or introduce controversial legislation. For the housing market, this mainly means delays to policy proposals that could have affected landlords and may still do so.
At Riva Rentals, we always closely monitor developments in The Hague. In this blog, we set out what is and is not changing and what that could mean for you. We offer brief advice on each topic and encourage you to assess your own circumstances carefully. Naturally, we are always happy to discuss your options.
The Affordable Rent Act temporarily on hold
The issue most discussed among private landlords is the Affordable Rent Act. This legislation aims to regulate much of the mid-market rental sector. Read all about it in this blog. The Act was introduced in the middle of last year and had a major impact on the rental market. The rules introduced at that time will remain in force for now.
The government’s collapse has put further implementation of this legislation on hold. The House of Representatives is expected to declare the proposed changes ‘controversial’ , meaning they cannot be considered again until a new government has been formed. Until then, nothing will change compared with last year. For example, landlords of private-sector properties can still charge market rents, provided the property’s points score exceeds the deregulation threshold.
Our advice
This offers some temporary breathing space, but be aware that there is strong political support for regulating mid-market rents. A future government is expected to revisit the issue. We therefore recommend reviewing whether your rental portfolio is sufficiently future-proof and making any changes necessary to maintain adequate returns.
Limits on WOZ values within the WWS will not be introduced for now
Another proposal that could directly affect rents is the planned restriction on how much a property’s WOZ assessed value counts towards its points score. At present, a high WOZ value can account for a large share of the points awarded to a home. The government wanted to cap this share at 33%.
This measure formed part of the proposed regulation of mid-market rents. Because further work on the Affordable Rent Act is on hold, this change has also been postponed indefinitely. Properties with high WOZ values will therefore retain their current advantage in the points system for now.
Our advice
Do you let homes in sought-after Rotterdam neighbourhoods with high WOZ values? This remains an advantage under the WWS for the time being. Nevertheless, we recommend calculating the points for each property and assessing how vulnerable that score would be if the rules were to change.
No new national registration duty or letting permit
Earlier discussions about the rental market also considered a nationwide registration obligation or even a letting permit for private landlords. Some municipalities, such as Amsterdam and Utrecht, have already taken steps locally.
However, a national requirement had not yet been written into law. The government’s collapse means the issue will not be pursued further for now. It is unlikely that a caretaker government will take additional steps in this area.
Our advice
Although Rotterdam currently has no registration requirement for ordinary residential letting, it remains important to keep up with municipal policy. We will always inform you if anything changes.
Plans for new housing investment and construction incentives delayed
The previous government said it had major ambitions for housing construction. Through the so-called Housing Construction Incentive , funding was made available to municipalities every year to speed up housing projects. The aim was to increase supply, including in the mid-market rental sector. Whether this policy can actually achieve its intended goals remains to be seen.
These investments depend on decisions at national level. Following the government’s collapse, applications and funding allocations have been delayed. Municipalities are waiting to see whether they can still count on support, creating uncertainty. As a result, new developments may start later or even be suspended temporarily.
Our advice
For you as a landlord, this means the shortage of rental homes is likely to continue for now. New supply will enter the market more slowly. Together with delays to new rental regulations, this leaves you in a relatively strong position in the current market.
Tax changes for property owners postponed
Finally, changes to the tax system had also been planned. These included proposals to adjust the “vacant possession ratio” in Box 3, which would have made property letting less attractive. A new system for taxing wealth based on actual returns was also being discussed.
The government’s collapse has also delayed this tax reform. We do not expect a caretaker government to introduce major fiscal changes. Any changes are likely to be pushed back to 2026 or later.
Our advice
In the short term, there is no change to your tax position as a property owner. Nevertheless, it is wise to start calculating different scenarios, especially if you hold substantial property assets in Box 3. You may want to consult a specialist.
What should you do now?
The political situation may be uncertain, but in the short term it actually brings some stability for landlords. No sweeping new rules will be introduced for now and the current framework remains in place. Nevertheless, this is not a time to stand still. Use the opportunity to analyse your rental portfolio. Which properties are just on the boundary of the regulated segment? Which are most vulnerable to future legislative changes?
At Riva Rentals we would be happy to help you analyse your rental portfolio and advise on your strategy. We follow national and local developments closely so you can focus on your properties, even while politics in The Hague is temporarily at a standstill.
Contact
Do you have any questions about what the government’s collapse could mean for the housing market, or is there anything else we can help with?
Contact us by emailing info@rivarentals.com.