Vesteda restricts 2024 rent increase to maximum of 4%

Vesteda will opt for a voluntary cap on its 2024 rent increase, raising rents by a maximum of 4% on 1 July. Meanwhile, the current caretaker cabinet is working on a legislative amendment for a maximum rent increase of 6.8% for the liberalised rental sector. The government-regulated social sector is subject to a maximum rent increase of 5.8%; housing associations have opted for a 5.3% increase.

“We do not expect this legislative amendment for the liberalised rental sector in the short term,” said Astrid Schlüter, Vesteda COO. "We would like to inform our tenant organisations and tenants in good time about our proposed rent policy. The statutory advice deadlines are tight, which is why we cannot wait for political decision-making. Announcing our rent price policy at an early stage gives tenant organisations enough time to give their advice and we can then inform our tenants before 1 May about the rent increase from 1 July 2024.”

Proposed 2024 rent policy

“In addition, we think a 6.8% rent increase is on the high side,” Astrid Schlüter continued. “We think it is important that our homes remain affordable in the future. We also advocate a consistent rent policy, so tenants know in advance what they can expect from us. This is why we have once again opted for a rent increase of inflation (CPI) + 1%, with a maximum of 4% for our liberalised rental homes. This same maximum percentage applies to our government-regulated homes.” The 1% surcharge is intended to meet building, renovation and sustainability costs.

Inflation not yet known

The inflation rate (CPI) will be set in March based on the March 2023-March 2024 inflation rate. Schlüter: “We are assuming an inflation rate of 3% in our current forecasts. If the final inflation rate is higher, it will remain 3% in our calculations. If the inflation rate is lower, we will include that figure in the rent calculation. As a result, the maximum rent increase this year could therefore be even lower than 4%.”

Peace of mind and predictability

According to Astrid Schlüter, the inertia and political capriciousness in recent years have created a lot of uncertainty among both tenants and landlords. “It is striking that over the past three years, politicians have changed the system for setting the maximum rent increase every single year. We have to keep changing in line with these systems and so do our tenants. We advocate a single statutory system that is fixed for the next 10 years. By doing this, the government will ensure a consistent rent increase policy and much-needed peace and predictability for both tenants and landlords.”