Rent Price Liberalisation Threshold: what does this mean?
The **rent price liberalisation threshold** is a threshold value in Dutch tenancy law that determines whether a dwelling is subject to **rent price regulation** or whether the rent price can be freely determined. From 2021, this threshold has been increased, meaning more homes in Westland no longer fall under social rent rules. Understand how this rule works and what it means for your rent price in the municipality of Westland.
What is the rent price liberalisation threshold?
The **rent price liberalisation threshold** is a statutory threshold value that indicates whether a dwelling is considered a **social housing** dwelling or **private sector** dwelling. When the rent price is below this threshold, specific rules apply such as the **points system** (see our article on the points system), maximum rent increases and protection against unreasonable increases. When the rent price is above this threshold, the rent price can be freely determined by the landlord.
Statutory basis
The rules regarding the rent price liberalisation threshold are laid down in:
- Rent Allowance Act (article 1, section 2, sub a): determines the threshold values for social rent.
- Maximum Rent Increase Act: regulates how much the rent may increase for social housing dwellings.
- Housing Act: defines the categories of rental dwellings (social rent, other rent, private sector).
Current threshold values (2024)
Since 2021, the threshold values have been increased to move more dwellings out of social rent. The current threshold values are:
- € 759.17 per month for a **standard dwelling** (average size, 2 bedrooms) in the **private sector**.
- This threshold may vary per municipality, including Westland, depending on the **rent price index** and local market conditions.
Important: When the rent price is higher than this threshold, the dwelling is no longer considered a social housing dwelling. This means that the landlord can freely determine the rent price and that you have no right to, for example, the points system or maximum rent increases.
How is the threshold determined?
The rent price liberalisation threshold is adjusted annually by the Statistics Netherlands (CBS) and the government. The calculation is based on:
- The rent price index: a measure of the development of rent price levels in the Netherlands.
- The average rent price in the private sector.
Difference between social rent and private sector
| Social rent | Private sector |
|---|---|
| Rent price below the liberalisation threshold (max. €759.17). | Rent price above the liberalisation threshold. |
| Regulated rent increases (max. 1.5% per year). | Free rent price determination by landlord. |
| Right to rent allowance (subject to conditions). | Rent allowance possible, but dependent on income. |
| Protection against unreasonable increases. | No statutory maximum increase. |
| Application of points system upon moving. | No points system. |
What does this mean for you as a tenant in Westland?
Whether you fall under rent price regulation depends on:
- The amount of your rent price: is it below the liberalisation threshold?
- The type of dwelling: social housing dwellings, student dwellings or private sector dwellings have different rules.
- The date of your tenancy agreement: some old agreements still fall under older rules.
Practical examples
Example 1: Social housing dwelling in Westland
You rent a dwelling for €650 per month in Westland. This dwelling falls under social rent, because the rent price is below the liberalisation threshold. You are entitled to:
- A maximum rent increase of 1.5% per year.
- Application of the points system.
- Protection against unreasonable rent increases via the District Court of The Hague.
You rent a dwelling for €850 per month in Westland. This dwelling falls in the private sector. The landlord can freely determine the rent price and there are no maximum rent increases.