Housing rent increase in 2025: this is what you need to know as a landlord

Low-end rent increase

Low-end rental agreements are those entered into before July 1, 2024 with an initial rent at or below the then liberalization limit, or those that have a rent at or below the social rent limit or a maximum of 143 points as of July 1, 2024.

In the low segment, the basic principle is that the landlord may increase the rent by a maximum of 5.0%. This percentage may be higher if the landlord is allowed to apply an income-related rent increase. The rent increase may not lead to a rent above the maximum rent limit corresponding to the WWS point number.

For rental housing in the low segment, the rent increase is regulated in Article 7:248 paragraph 1 and paragraph 2, 250 and 252 BW. If nothing is contractually regulated, the landlord can only increase the rent by law with a rent increase proposal. The ROZ model follows the legal regulation for the low segment and middle segment. This means that the landlord may make an annual rent increase proposal. The landlord must do this in writing at least two months before the proposed effective date. The proposal must mention:

• the prevailing rent;
• The rate of increase;
• the proposed new rent;
• the effective date of the rent increase;
• the manner in which and time limit within which the tenant may object to the proposal;
• The consequences that the law attaches to failure to raise an objection.

Rent may not be increased in all cases as of July 1, 2025. If the Rent Commission has determined that there is a defect, the landlord may not increase the rent based on a proposal. After repairing the defects, rent increase is allowed again.

The statutory provisions are mandatory law for the low end, so they may not be deviated from by contract.

Rent increase middle segment

The middle segment includes leases concluded as of July 1, 2024 or later, with initial rents between €879.66 and €1,157.96 per month (from July 1, 2024 to December 31, 2024) or between €900.07 and €1,184.83 per month (in 2025).

For the middle segment, the maximum allowable rent increase as of Jan. 1, 2025, is 7.7%, equal to the collective wage trend + 1%. Lower may. The rent increase may - as in the low segment - not lead to a rent above the maximum rent limit corresponding to the property's housing rating point number.

If the property falls in the middle segment, the landlord-just like in the high segment-can only increase the rent annually if this is agreed in the lease. The ROZ model contains such an arrangement for changing the rent.

High-end rent increase

Rental agreements in the high segment are rental agreements with a rent above the liberalization limit applicable at the time the rental agreement is entered into. On July 1, 2025, this is an initial rental price from €1,184.82 (from 187 points and above).

If the property falls in the high segment, the landlord can only increase the rent annually if this has been agreed in the lease. Moreover, in that case, pursuant to Article 7:247 of the Civil Code, the statutory provisions (with the exception of a few articles) do not apply. This applies, for example, to Sections 7:252, 7:252a and 7:252b of the DCC, which regulate the (income-related) rent increase/reduction and the applicability of the housing valuation system. These articles do not apply to the high segment, unless otherwise agreed in the lease.

If no agreements were made in the lease, there was (formerly) an alternative route to still achieve a rent increase. Namely, the landlord in that case had the option of making a reasonable proposal regarding the rent. If the tenant did not agree to the proposed increase in the case of a liberalized rent, the landlord could terminate the lease on the grounds of refusing a reasonable proposal. The condition was then that the proposed rent increase was reasonable. In that case, the tenant was given a final deadline to accept the proposal. If the tenant failed to do so, the lease ended. This alternative route cannot be used at this time (and at least until May 1, 2029). This is due to an amendment to article 7:274 paragraph 1 sub d of the Dutch Civil Code as a result of the Maximum Rent Increase Act for deregulated leases.

If the rental agreement does provide for the possibility of a rent increase, then, based on the Law maximizing rent increases in deregulated rental agreements for the high segment, a maximum permitted rent increase of 4.1% will apply as of January 1, 2025. This is equal to the CPI + 1%. Lower is allowed.

Validity of rent modification clause

Many leases contain a rent modification clause with an annual rent indexation. Such a clause cannot be applied in all cases.

The rent modification clause may not violate Directive 93/13 (on unfair terms in consumer contracts). If a clause is unfair within the meaning of the Directive, the clause is void and disregarded. Recently, the Supreme Court was asked whether or not a rent modification clause providing for an increase equal to the CPI + 3% is fair. The Supreme Court held that this clause must be broken down into (1) the CPI and (2) the +3% surcharge. The premise is that a rent increase equal to the CPI with a +3% surcharge is allowed. It is unclear at this time where the line is drawn as to what qualifies as fair.

In the event that the mark-up, for whatever reason, would not be fair, the consequence would be the following. In that case, as of the start of the lease, the landlord was allowed to increase the rent based only on the CPI and the mark-up is completely disregarded. If the landlord then still applied the surcharge, he charged the tenant an overpayment of rent. The overpayment can then be reclaimed by the tenant as being undue or offset.

In addition, pursuant to Section 7:248 of the Dutch Civil Code, even when the rent modification clause with storage is valid, to the extent that application of a rent modification clause leads to an increase beyond that permitted by law, the clause is null and void to that extent and the rent is then deemed to have been increased by the maximum permitted increase.

The above implies that even high-end housing for which a rent increase equal to CPI + 3% has been agreed upon in 2025 will be subject to a maximum rent increase of 4.1% (CPI + 1%).

Any questions?

Do you have any questions as a result of this blog? If so, contact the rental law specialists at Straatman Koster Lawyers.

NOTE At the time of publishing this blog, it is still unclear whether the annual rent increase will be frozen in 2025 and 2026 for tenants in the social segment, following the Spring 2025 Memorandum.