Keijzer's plan to freeze rents faces cancellation!
The Raad van State has issued scathing criticisms of the Dutch government's plan to freeze social housing rents, and has issued the strongest possible ruling, known as "dictum D," which means advice against presenting the bill at all. According to reports published by De Telegraaf and the NOS broadcasting agency, this position is a major blow to Housing Minister Mona Keijzer, who is seeking to pass the law before July 1.
Although the government is not obliged to follow the recommendations of the Raad van State, it is customary for ministers to adjust their plans based on the provided comments. The Raad van State considered that the project was prepared in haste, without following the proper legislative process, and that housing associations were not given enough time to prepare. The full assessment will be published on Monday.
It is not only the Raad van State that objects; even within Parliament, questions are raised about the chances of passing the law, especially in the Eerste Kamer where the coalition parties do not hold a majority. Left-wing and right-wing opposition parties are expressing strong criticisms.
The freeze on rents leads to a decline in the income of housing associations, which negatively affects their ability to build new homes. The associations also warn of difficulties in implementing sustainability plans. The associations have filed a lawsuit to challenge the plan.
Although the government allocated funds to compensate associations, the estimated amount of less than one billion euros does not cover the decline in their investments, which associations say will decrease by 49 billion euros. Opposition parties confirm that this heralds greater problems in the long term.
It is noteworthy that Minister Kaiser herself expressed reservations when presenting the plan, stating during a parliamentary discussion that she does not see the possibility of proceeding with the plan in its current form, especially with the proposed compensation method from the coalition. Kaiser places great importance on housing construction and announced at the housing summit at the end of last year a plan to build 100,000 housing units annually.