A house rent hike could hit the Dutch housing market, the country’s biggest housing provider Nederlandse Veritas has warned, with the government looking at introducing a measure that could cost up to 20 percent of household incomes.
The country’s housing authority said in a statement on Wednesday that a 1 percent hike in house prices could lead to an additional 10,000 to 20,000 households losing their home.
“The Netherlands’ housing market is a complex and dynamic system with different interests and interests of the different segments of the population,” the statement said.
“It is not possible to foresee a scenario in which the increase in the rent could lead the market to collapse.”
The Dutch government has yet to say what its policy plan will be.
The government is currently negotiating a new lease for a six-story building that it owns in the city of Maastricht, and is planning to sell it in a few months, according to the statement.
The house will be the largest tenant of the building, Nederlands Landesbrouwer (NLB), the housing authority told AFP.
The housing authority added that the NLB building, which is the largest private tenant in Maastrad, has been the site of a serious property crime since 2009, when it was targeted by burglars and arsonists.
The NLB was attacked by a group of men who took over the building’s storage shed, forcing the building owner to flee the country, the statement added.
In 2012, an investigation showed the NLBs main tenants were not only thieves, but also a group that targeted local businesses.
In the wake of the NLT investigation, the government introduced a property-rights law that allows landlords to evict tenants in their own homes, which they are currently doing.
However, the legislation has not been able to curb the rise in crime linked to the building.
A recent study by Nederlanders Landesband, a non-profit housing provider, said that more than 60 percent of all burglaries in the Netherlands take place in homes with no tenants.
The Nederlanderse Verita (NVV) said that if the government does not take action, it may be forced to implement an additional 1 percent increase in house rents.
The NVV said that the rise would be enough to cost up 20 percent to 40 percent of households’ incomes, and that a 20 percent rise would likely hit those who already lived in rented apartments.
The Netherlands is also facing a major housing crisis, with more than half of its population now living in overcrowded homes.