Regulatory Framework Assessment: Social Housing Providers In Netherlands

In Netherlands, social housing is provided primarily by housing associations (private and independent nonprofit organizations), with about one-third of all housing units in the country, or 75% of the rental stock, being classified as social or affordable housing. Housing associations have a legal obligation to give priority to households with lower incomes. Their mandate is well defined and subject to various rent limits. In contrast, rents in the private housing sector have been liberalized. The associations operate within a legal framework set up by the state and supervised by the central government, which sets the rules for social housing allocation. Under the 2015 Housing Act, the housing regulator AW, is responsible for ensuring that the associations focus on their core

...At the end of 2021, the newly formed Dutch government announced its intention to abolish the landlord levy from 2023. This is a property tax-like expense introduced in 2013 totaling about 2 billion annually. This decision is part of the government's plan to address the housing situation in the Netherlands. In return, the government wants accelerated new construction, with a total of 100,000 new housing units per year, and investments in existing assets to enhance energy efficiency. S&P Global Ratings understands that social housing providers will increase development in the mid-rent segment, which, although under supervision from the regulator Autoriteit woningcorporaties (AW), does not benefit from guaranteed loans from WSW. Counterbalancing this is a debate in Netherlands regarding the affordability of rental housing, which has intensified in the current high-inflation environment. We understand there is pressure on the government to limit rent increases. Because tenants are facing a...

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