Bill Rent Reduction 2023
Thanks to agreements made by the Woonbond with the ministry and housing associations, tenants who rent housing from a housing association will be entitled to a one-time rent reduction in 2023. After both the House of Representatives and the Senate agreed to the bill, that law took effect March 1, 2023.
Because of this new law, tenants with a rent above €575 and a low income will be entitled to a rent reduction as of July 1, 2023. What are the conditions to qualify for this rent reduction?
There are a number of conditions that must be met in order to qualify:
- The landlord is a housing corporation (not a real estate investor or private individual)
- The basic rent is higher than €575.03 per month
- The income must be ‘low
- The living space is an independent dwelling or a trailer (no rooms)
- The living space is a social rental house (not a free sector house with liberalized rent)
- You are registered on 1 March 2023 and living in the accommodation whose rent is to be reduced.
What exactly constitutes a ‘low’ income depends on the number of persons in the household.
Household composition annual income:
- 1 person: € 23,250
- 1 person with AOW: € 24,600
- 2 or more persons: € 30,270
- 2 or more persons (at least 1 with AOW): € 32,730
Self-application usually not necessary
If you had a low income in 2021, you do not have to ask for rent reduction yourself. The Tax Office will inform your housing corporation that you had a low income in 2021. So your corporation would then have to reduce the rent or at least make a proposal to do so.
If you only had a low income in 2022 or 2023 – for example because you recently lost your job – you will have to apply for this yourself. This can be done until December 30, 2024. You are entitled to a rent reduction as soon as you can prove that your household has had a low income for at least six months.
The rent reduction takes effect on July 1, 2023 and replaces the rent increase that is customary on July 1. Most tenants will therefore be notified of this before June 1, 2023.
Need to apply yourself?
Some tenants with a low income will have to apply for the rent reduction themselves. This is usually the case when the housing corporation does not know that the tenant has a low income. These are, for example:
- Tenants who did not have a low income in 2021, but later did
- Tenants of caravans / trailers
Self-application of the rent reduction can be done until December 30, 2024. The rent reduction can be granted as soon as there has been a low income and a rent above € 575 for six months or longer.
Should it be necessary to apply for a rent reduction yourself, it is best to send a registered letter to your landlord. The web page of the Woonbond has an excellent model letter that you can use for this purpose. Be sure to include proof of your income with this letter. This could be copies of recent pay slips, but also, for example, benefit statements or a statement from the accountant if you are self-employed. You must also include a statement about the composition of your household.
Landlord does not make an offer or does not cooperate
If you do not receive a proposal, do not agree with your landlord’s proposal or your landlord simply refuses to cooperate, you can start a procedure with the Rent Commission. For more information see this webpage of the Rent Commission itself.
The amount of rent reduction depends on how high your rent is. The rent is usually reduced to just under €575.03.
So keep a close eye on whether you will be notified soon, as it would be a shame to pay too much rent unnecessarily. For more information on this topic, see this webpage from the central government and this webpage from the Woonbond.