The State Council attacks the government's plan to freeze rent.
The Council of State in the Netherlands criticized the government's plan to freeze rents for social housing owned by housing institutions for two years, considering it a violation of the principle of equality and lacking a strong legal basis.
Housing for two years, and considered it a violation of the principle of equality and lacking a strong legal basis. Minister Mona Kaiser requested the council to evaluate the plan, which was reached during the spring budget negotiations after the parliament voted in favor of it. However, the council clarified that the legislation was drafted hastily and would cause significant problems for housing institutions in preparing for implementation. It also pointed out that the effects on the housing market as a whole had not been adequately studied.
Initially, the plan targeted all tenants, but Kaiser later announced that it would only apply to tenants of housing institutions, due to the difficulty of compensating private sector owners for income losses, who own about 20% of the total social housing.
Housing institutions have confirmed that the compensation package of one billion euros is insufficient, and that the decision will negatively impact the construction of new housing and the renovation of existing homes. These institutions have also initiated legal proceedings against the government. The plan also lacks majority support in the Senate, which is a prerequisite for its implementation, making the chances of its application almost nonexistent.
For her part, Kaiser said she is currently working on preparing a second report that she hopes to discuss with ministers this week, noting that the four parties making up the government coalition have already begun discussions on the implications of the State Council report.