In Amsterdam, most rents are capped, revenge evictions illegal and affordable housing quotas are enforced

All this and you get a canal, too. Image: Patrick Clenet/Wikimedia Commons.

Renters in the Netherlands are some of the most protected tenants in the world: most rents are capped, revenge evictions are illegal, affordable housing quotas are enforced. While renters in the UK are filling holes in their ceilings with chewed-up paper, Dutch renters are settling down for a friendly chat with their government supplied housing lawyers. It’s a utopia.

But of course, it isn’t, really. And once I’ve finished spaffing on about all the Dutch laws the UK should adopt, I’ll explain the loophole that is making the whole thing fall apart.

The Netherlands is truly committed to affordable housing

Nearly 50 per cent of the housing in Amsterdam is social rented housing, managed by housing associations and the government. Nearly half.

And it gets better: by 2020, 30 per cent of new builds are going to be social housing. Low income families can live near to the city centre, neighbourhoods retain a diverse mix of people and they’ve neatly sidestepped the ghost towns currently populating France..

Rents are capped on a points system

The Dutch system assigns a certain number of points to each property in the social rented sector, which determines how much rent you have to pay. It’s based on things like number of windows, storage space, and how high up the apartment is.

What this means is that the property's owners can’t make surface changes to an apartment, and then use them to justify hiking the rent. If a tenant moves into an apartment and realises they are paying too much based on the point system, they can also claim the excess rent back.

(Editor's note: It's been brought to our attention that there are properties in the private rental sector which aren't subject to this cap. But a) this liberalisation only applies to the largest and most expensive properties, and b) the social rented sector makes up around three-quarters of all Dutch rental homes, anyway.)

There are no revenge evictions

The only ways a Dutch landlord can evict a tenant is if they have multiple, police registered, noise complaints from the neighbours, or if they are demonstrably damaging the apartment.

The only exceptions are if the landlord suddenly needs to move back into the property (that still needs to go through the courts, and they have to live there for one year after the tenants leave); or if the landlord registered the tenancy as a short term rental before the tenants moved in. A short term rental can only be registered if the landlord is actively trying to sell the property; the tenants must be informed of this before they move in.


There’s free legal support for tenants

Wijksteunpunt Wonen is a government funded organisation that provides free legal advice to tenants. That includes filing charges on their behalf, subsidising any legal fees and negotiating with the landlord.

When it comes to housing, the Dutch have a cheery little saying that

“Expats are the suckers of the world”, so WW is particularly good at helping non-Dutch speakers navigate the intricacy of Dutch law. The current housing slump has seen a lot of landlords attempting to squeeze ever more income out of the one bed apartments they bought in their 20s, only to be told by WW that they have to reimburse the tenants.

Now for the bad news.

Estate agents suck

Estate agents in The Netherlands occupy the same position that they do in the UK. They are the middle men, and landlords are increasingly relying on estate agents to rent their homes in an attempt to simplify the process.

What many landlords don’t realise is that, when they hand over their properties to estate agents, they are basically allowing them to hold tenants hostage. Estate agents will often not disclose to tenants that a property is a short-term let – because they still get their signing fee, even if the tenant ends up taking the landlord to court.

Speaking of signing fees, one of the great things about the Netherlands is that only one party has to pay an estate agents fee; most of the time that’s the landlord. If the tenant finds the property themselves (online, say), then they don’t have to pay as the estate agent hasn’t done anything for them, other than maybe turn up at a building and open a door.

But – there is no law in place to stop estate agents blocking communication between tenants and landlords. And some tell tenants that they have to pay fees that can run into the thousands of euros, if they want the landlords to know they’re interested in renting an apartment.

This effectively prices lower income tenants out of certain neighbourhoods as relatively few people can afford to be blackmailed at €1,000+ a pop.

There are many, many, many good things about Dutch housing law that the UK could learn from, starting with Wijksteunpunt Wonen. But until the Netherlands passes laws to keep estate agents in line, tenants will still be vulnerable to exploitation.

This article was amended on 13 March 2015 to clarify that some private properties are outside the rent capping system.

 
 
 
 

A new wave of remote workers could bring lasting change to pricey rental markets

There’s a wide world of speculation about the long-lasting changes to real estate caused by the coronavirus. (Valery Hache/AFP via Getty Images)

When the coronavirus spread around the world this spring, government-issued stay-at-home orders essentially forced a global social experiment on remote work.

Perhaps not surprisingly, people who are able to work from home generally like doing so. A recent survey from iOmetrics and Global Workplace Analytics on the work-from-home experience found that 68% of the 2,865 responses said they were “very successful working from home”, 76% want to continue working from home at least one day a week, and 16% don’t want to return to the office at all.

It’s not just employees who’ve gained this appreciation for remote work – several companies are acknowledging benefits from it as well. On 11 June, the workplace chat company Slack joined the growing number of companies that will allow employees to work from home even after the pandemic. “Most employees will have the option to work remotely on a permanent basis if they choose,” Slack said in a public statement, “and we will begin to increasingly hire employees who are permanently remote.”

This type of declaration has been echoing through workspaces since Twitter made its announcement on 12 May, particularly in the tech sector. Since then, companies including Coinbase, Square, Shopify, and Upwork have taken the same steps.


Remote work is much more accessible to white and higher-wage workers in tech, finance, and business services sectors, according to the Economic Policy Institute, and the concentration of these jobs in some major cities has contributed to ballooning housing costs in those markets. Much of the workforce that can work remotely is also more able to afford moving than those on lower incomes working in the hospitality or retail sectors. If they choose not to report back to HQ in San Francisco or New York City, for example, that could potentially have an effect on the white-hot rental and real estate markets in those and other cities.

Data from Zumper, an online apartment rental platform, suggests that some of the priciest rental markets in the US have already started to soften. In June, rent prices for San Francisco’s one- and two-bedroom apartments dropped more than 9% compared to one year before, according to the company’s monthly rent report. The figures were similar in nearby Silicon Valley hotspots of San Jose, Mountain View, Palo Alto.

Six of the 10 highest-rent cities in the US posted year-over-year declines, including New York City, Los Angeles, and Seattle. At the same time, rents increased in some cheaper cities that aren’t far from expensive ones: “In our top markets, while Boston and San Francisco rents were on the decline, Providence and Sacramento prices were both up around 5% last month,” Zumper reports.

In San Francisco, some property owners have begun offering a month or more of free rent to attract new tenants, KQED reports, and an April survey from the San Francisco Apartment Association showed 16% of rental housing providers had residents break a lease or unexpectedly give a 30-day notice to vacate.

It’s still too early to say how much of this movement can be attributed to remote work, layoffs or pay cuts, but some who see this time as an opportunity to move are taking it.

Jay Streets, who owns a two-unit house in San Francisco, says he recently had tenants give notice and move to Kentucky this spring.

“He worked for Google, she worked for another tech company,” Streets says. “When Covid happened, they were on vacation in Palm Springs and they didn’t come back.”

The couple kept the lease on their $4,500 two-bedroom apartment until Google announced its employees would be working from home for the rest of the year, at which point they officially moved out. “They couldn’t justify paying rent on an apartment they didn’t need,” Streets says.

When he re-listed the apartment in May for the same price, the requests poured in. “Overwhelmingly, everyone that came to look at it were all in the situation where they were now working from home,” he says. “They were all in one-bedrooms and they all wanted an extra bedroom because they were all working from home.”

In early June, Yessika Patapoff and her husband moved from San Francisco’s Lower Haight neighbourhood to Tiburon, a charming town north of the city. Patapoff is an attorney who’s been unemployed since before Covid-19 hit, and her husband is working from home. She says her husband’s employer has been flexible about working from home, but it is not currently a permanent situation. While they’re paying a similar price for housing, they now have more space, and no plans to move back.

“My husband and I were already growing tired of the city before Covid,” Patapoff says.

Similar stories emerged in the UK, where real estate markets almost completely stopped for 50 days during lockdown, causing a rush of demand when it reopened. “Enquiry activity has been extraordinary,” Damian Gray, head of Knight Frank’s Oxford office told World Property Journal. “I've never been contacted by so many people that want to live outside London."

Several estate agencies in London have reported a rush for properties since the market opened back up, particularly for more spacious properties with outdoor space. However, Mansion Global noted this is likely due to pent up demand from 50 days of almost complete real estate shutdown, so it’s hard to tell whether that trend will continue.

There’s a wide world of speculation about the long-lasting changes to real estate caused by the coronavirus, but many industry experts say there will indeed be change.

In May, The New York Times reported that three of New York City’s largest commercial tenants — Barclays, JP Morgan Chase and Morgan Stanley — have hinted that many of their employees likely won’t be returning to the office at the level they were pre-Covid.

Until workers are able to safely return to offices, it’s impossible to tell exactly how much office space will stay vacant post-pandemic. On one hand, businesses could require more space to account for physical distancing; on the other hand, they could embrace remote working permanently, or find some middle ground that brings fewer people into the office on a daily basis.

“It’s tough to say anything to the office market because most people are not back working in their office yet,” says Robert Knakal, chairman of JLL Capital Markets. “There will be changes in the office market and there will likely be changes in the residential market as well in terms of how buildings are maintained, constructed, [and] designed.”

Those who do return to the office may find a reversal of recent design trends that favoured open, airy layouts with desks clustered tightly together. “The space per employee likely to go up would counterbalance the folks who are no longer coming into the office,” Knakal says.

There has been some discussion of using newly vacant office space for residential needs, and while that’s appealing to housing advocates in cities that sorely need more housing, Bill Rudin, CEO of Rudin Management Company, recently told Spectrum News that the conversion process may be too difficult to be practical.

"I don’t know the amount of buildings out there that could be adapted," he said. "It’s very complicated and expensive.

While there’s been tumult in San Francisco’s rental scene, housing developers appear to still be moving forward with their plans, says Dan Sider, director of executive programs at the SF Planning Department.

“Despite the doom and gloom that we all read about daily, our office continues to see interest from the development community – particularly larger, more established developers – in both moving ahead with existing applications and in submitting new applications for large projects,” he says.

How demand for those projects might change and what it might do to improve affordable housing is still unknown, though “demand will recover,” Sider predicts.

Johanna Flashman is a freelance writer based in Oakland, California.