What is the difference between social rent and free sector rent?

What does the law say?

The distinction between social housing and the private sector boils down to one thing: the points system. This system determines the maximum rent a property may cost. If you exceed the limit, you are in the private sector.

Section 7:247 of the Dutch Civil Code stipulates that rent control – including assessment by the Rent Assessment Committee – applies to properties in the regulated sector (check this section on wetten.nl for the most up-to-date version). Whether a property is regulated or deregulated depends on the initial rent and the number of points based on the Housing Valuation System (WWS) – better known as the points system.

The points system awards points to a property based on quality: the floor area, the facilities, the energy performance and the WOZ value. The total number of points determines the maximum rent. If the maximum rent based on the points is below the so-called liberalisation threshold, the property is social housing. If it is above it, the property is in the private sector.

The liberalisation threshold is set anew each year by the government. You can find the current threshold on rijksoverheid.nl and huurcommissie.nl.

Important news: the Affordable Rent Act (which came into force on 1 July 2024) has extended the points system to the mid-market segment. Some properties that were previously in the private sector are now also subject to a maximum rent under the extended WWS. Check on huurcommissie.nl to see if this applies to your property.

When does this apply to you?

Social housing – what do you have?

In social housing – also known as the regulated sector – the strongest protection rules apply:

Maximum rent: the landlord may not charge more than the points system allows.
Annual rent increase: permitted only up to the statutory maximum, once a year.
Rent Tribunal: you can always appeal to the Rent Tribunal regarding rent reviews, objections to increases and service charges.
Protection against eviction: the landlord cannot simply evict you.

Social housing is mainly provided by housing associations, but private landlords can also let social housing.

Private sector – what are your options?

In the private sector – also known as the deregulated sector – the rules are different:

No statutory maximum rent (unless the Affordable Rent Act applies).
Rent increases: whatever is stated in the contract applies. Often an indexation clause based on inflation.
Rent Tribunal: a more limited role in rent reviews – but it also has jurisdiction over service charges here.
Protection against eviction: this does apply, even in the private sector. The landlord cannot simply evict you.

How do you know which sector you’re in?

Check your tenancy agreement. Is the rent above the liberalisation threshold? Then you are probably in the private sector. But be careful: the property must actually have enough points to justify that price. Has the landlord asked for too many points? Then you may still be in the social housing sector – even if you thought you were renting in the private sector.

Check your points total using the points calculator on huurcommissie.nl. Not sure? A solicitor can sort this out for you.

Mid-range rent and the Affordable Rent Act (2024)

Thanks to the Affordable Rent Act, properties in the mid-range segment – properties with a points score within a certain range – are now also subject to a maximum rent via the extended points system. This is a new category between social housing and the private sector. You can check whether your property falls under this category via huurcommissie.nl.

Step-by-step guide – what can you do now?

Check your rent against the liberalisation threshold. Look up the current liberalisation threshold via rijksoverheid.nl or huurcommissie.nl. Are you paying more than that threshold? Then you are likely a private sector tenant.
Calculate the points score for your home. Use the points system on huurcommissie.nl. The points score determines the maximum rent and therefore the sector.
Check whether the Affordable Rent Act applies to you. Does your home fall within the mid-range segment? If so, there may be maximum rent limits that your landlord must adhere to. Check this via huurcommissie.nl.
Request a rent review if you are unsure. Do you think you are paying too much for your home’s points score? Submit a request to the Rent Assessment Committee. You can do this within 6 months of the start of the tenancy agreement for an initial rent review.
Read your tenancy agreement carefully. Does it contain an indexation clause? What are the agreements regarding rent increases? In the private sector, the contract determines much more than in the social housing sector.
Ask a lawyer for advice if in doubt. The line between social housing and the private sector is not always clear. A lawyer on Claim.Cafe can quickly determine which sector you fall into and what rights you have.

Common mistakes

Mistake 1: Thinking you have no rights in the private sector. Private sector tenants have less rent protection, but they do have protection against eviction. And the Rent Tribunal always has jurisdiction over service charges. Private sector does not mean without rights.

Mistake 2: Assuming you are renting in the private sector purely based on the rent. The sector depends on the points score – not just the price. Has the landlord charged too much for the quality of the property? Then you may still be a social housing tenant, even if you pay a high rent.

Mistake 3: Applying for a rent review too late. Do you want to have the initial rent reviewed? Then you only have a limited period after your tenancy agreement comes into effect. If you wait too long, this right lapses. Act quickly if you have doubts about your rent.

Mistake 4: Not realising that the Affordable Rent Act grants new rights. Many tenants are unaware that new rules will apply from 1 July 2024. Properties that were previously in the private sector may now be subject to a maximum rent. Check whether this applies to you.

Mistake 5: Agreeing to a rent increase without checking whether it is valid. In the social housing sector, rent increases are subject to strict rules. Always check whether the increase falls within the legal maximum and whether the procedure has been followed correctly.

Frequently asked questions

How do I know if my home is social housing or private sector?

That depends on your property’s points score under the housing valuation system and the liberalisation threshold. Calculate the points score via huurcommissie.nl and compare the maximum rent with the liberalisation threshold. Are you paying more than the maximum rent allowed by the points? Then you may be in the private sector unfairly.

Can I go to the Rent Assessment Committee if I rent in the private sector?

The Rent Assessment Committee has limited powers regarding rent assessments in the private sector – but it always has jurisdiction over service charges, even in the private sector. Do you think your home should actually have been social housing? If so, you can apply for a rent assessment within the applicable timeframe.

What changes will the Affordable Rent Act bring for private sector tenants?

From 1 July 2024, a maximum rent will apply to mid-market properties via the extended points system. This means that some properties that were previously in the private sector will now also be subject to a statutory maximum. Check on huurcommissie.nl whether this applies to your property.

Do private sector tenants also have protection against eviction?

Yes. Protection against eviction applies to all tenants of residential property – including those in the private sector. The landlord must have a legal ground for eviction, and in the event of a dispute, the court will decide. This is one of the rights that are the same in both sectors.

What is the liberalisation threshold and where can I find it?

The liberalisation threshold is the rent limit that marks the distinction between social housing and the private sector. Properties with a maximum rent based on points below that threshold are classified as social housing. The threshold is adjusted annually and can be found on rijksoverheid.nl and huurcommissie.nl.

Relevant legal provisions

Consult the following articles via wetten.nl for the exact and current text:

Section 7:247 of the Dutch Civil Code – applicability of rent protection to the regulated sector
Residential Rent Act – maximum rents and the housing valuation system (points system)
Residential Rent Decree – details of the points system and liberalisation threshold
Affordable Rent Act (2024) – extension of the points system to the mid-market
See also Book 7 of the Dutch Civil Code, section on residential tenancy law, for other provisions on rent control