Rent Price Liberalisation Threshold: what does this mean?
The **rent price liberalisation threshold** is a threshold value in Dutch tenancy law that determines whether a property falls under **rent price regulation** or whether the rent price can be freely determined. Since 2021, this threshold has been increased, meaning more properties in Rotterdam no longer fall under social rent rules. Understand how this rule works and what it means for your rent price in the Rotterdam region.
What is the rent price liberalisation threshold?
The **rent price liberalisation threshold** is a statutory threshold value that indicates whether a property is considered a **social housing** property or **private sector**. When the rent price is below this threshold, specific rules apply such as the **points system** (see our article on the points system), maximum rent increases and protection against unreasonable increases. Above this threshold, the rent price can be freely determined by the landlord, which often occurs in Rotterdam due to high real estate prices.
Legal basis
The rules regarding the rent price liberalisation threshold are laid down in:
- Rent Allowance Act (article 1, paragraph 2, sub a): determines the threshold values for social rent.
- Maximum Rent Increase Act: regulates how much the rent may increase for social housing.
- Housing Act: defines the categories of rental properties (social rent, other rent, private sector).
Current threshold values (2024)
Since 2021, the threshold values have been increased to remove more properties from social rent. The current threshold values are:
- € 879.66 per month for an **independent dwelling** (updated for 2024) in the **private sector**.
- In Rotterdam, the application may vary due to local rent price index and the tight housing market.
Important: When the rent price is higher than this threshold, the property is no longer considered social housing. This means that the landlord can freely determine the rent price and that you have no right to, for example, the points system or maximum rent increases. Contact the Legal Counter Rotterdam for a personal check.
How is the threshold determined?
The rent price liberalisation threshold is adjusted annually by the Statistics Netherlands (CBS) and the government. The calculation is based on:
- The rent price index: a measure of the development of rent price levels, including in Rotterdam.
- The average rent price in the private sector.
Difference between social rent and private sector
| Social rent | Private sector |
|---|---|
| Rent price below the liberalisation threshold (max. €879.66). | Rent price above the liberalisation threshold. |
| Regulated rent increases (max. inflation +1% in 2024). | Free rent price determination by landlord. |
| Right to rent allowance (subject to conditions). | No rent allowance for private sector. |
| Protection against unreasonable increases via Rent Tribunal. | No statutory maximum increase; reviewable by District Court Rotterdam. |
| Application of points system upon moving. | No points system. |
What does this mean for you as a tenant in Rotterdam?
Whether you fall under rent price regulation depends on:
- The amount of your rent price: is it below the liberalisation threshold?
- The type of property: In Rotterdam, student accommodations and port district apartments are often regulated differently.
- The date of your tenancy agreement: Pre-2021 contracts may still fall under older rules.
Practical examples Rotterdam
Example 1: Social housing
You rent an apartment in Rotterdam-South for €800 per month. This falls under social rent (below €879.66), with right to:
- Maximum rent increase according to Good Landlordship Act.
- Rent allowance and points system check via Rent Tribunal.
A studio in Rotterdam Centre for €950: private sector, no regulation. Free negotiation, but check for usurious interest at Legal Counter Rotterdam, Westblaak 180.