Central government liberalization limit

The liberalization limit.

What is that exactly? And why is the liberalization limit so important? The liberalization limit is determined annually by the central government and determines whether you rent a social or private sector home. Anyone who wants to qualify for a Rental Commission case will have to deal with it. The liberalization limit.

New: The liberalization limit for 2024 is €879,66

This is important to know because in some procedures the Rent Assessment Committee may only make a ruling if your home falls in the social sector. The Rent Assessment Committee looks at the liberalization limit in the following procedures:

• Rent reduction in case of maintenance defects
• Annual statement of service costs
• Rent reduction based on points

You can only start the above procedures if you rent social housing. If you live in the private sector, you are unfortunately not eligible, provided your landlord gives permission or the rental contract explicitly states that you can go to the Rent Assessment Committee.

Liberalization limit points

The government has put together the home valuation system. A points system that determines what the maximum rental price of your home should be. If the home falls below the liberalization limit, your home is a social home. Everything above is considered a free sector.

You receive points for each factor in your home, such as the energy label of the living space, the number of square meters, and whether the rooms are heated or not. Once all factors have been added up, a maximum rental price is determined. Do the here rental price check of the Rental Committee.

Many people also know this limit when granting housing benefit. You only receive housing allowance if your home has not been deregulated. The liberalization limit is determined every year by the government.

Number of points

The number of points associated with the liberalization limit, based on 2023, is a total of 149 points. This number of points is equal to € 808,06. The living space must fall below this number of points to be considered social. Are you renting a home in a different year? Then the liberalization limit established at that time applies.

Assessment of initial rent Liberalization limit

For new rental contracts, a tenant may ask the Rental Committee to carry out a points assessment on the living space within 6 months of an indefinite contract. The Rental Committee will then determine what the maximum rental price of the home may be. If the number of points falls below the liberalization limit, the Rental Committee may reduce the rent retroactively. This procedure is called the assessment of initial rent

With a temporary rental contract, a tenant may start the procedure up to 6 months after the rental contract has expired, even if a tenant has moved. 

Have you rented a home in 2023? Then the points must fall below € 808,06 to receive a rent reduction when the rent is assessed. Does the house exceed this limit? Then the rent remains as it is and the Rent Assessment Committee cannot reduce it.

How do I know whether I am renting in a social or private sector?

The liberalization limit determines whether your home is social or private sector. This takes into account the rental price at the time of entering into the rental contract. There is a fixed liberalization limit for each year, which you can find at the bottom of this message.

Example:

You entered into a rental contract in 2017. The liberalization limit in 2017 was: € 710,68. The basic rent of your home must be below this amount to be characterized as social. Everything above this amount means a free sector.

It is logical that your income can change and increase. Sometimes a tenant is faced with a rent increase based on income. In 2023 it may well be that after all annual rent increases you will have a rent of € 950. Because the rent was below the deregulation limit at the time the rental contract was entered into, your home remains social and your rights remain in force, even if you receive housing allowance.

No right to procedures with the Rent Assessment Committee

If the home is in the private sector and you cannot use the above procedures, you as a tenant can go to a subdistrict court with a lawyer to obtain a rent reduction or compensation for the reduced enjoyment of your home. You will then have to pay the costs of a lawyer yourself.

It is therefore always wise to have legal assistance. If you had a low income 2 years ago, you may be eligible for a lawyer paid by the government. Huurteam Nederland works with the best tenancy law lawyers in the Netherlands. Get in touch with us to learn more.

Liberalization limits for (new-build) homes that were rented for the first time between July 1, 1989 and July 1, 1994:

• July 1, 1989 NLG 750
• July 1, 1990 NLG 775
• July 1, 1991 NLG 820
• July 1, 1992 NLG 865,42
• July 1, 1993 NLG 913,33

Liberalization limits from 1 July 1994 (for all rental properties):

• July 1, 1994 NLG 963,75
• July 1, 1995 NLG 1.007,50
• July 1, 1996 NLG 1.047,92
• July 1, 1997 NLG 1.085
• July 1, 1998 NLG 1.085
• July 1, 1999 NLG 1.107
• July 1, 2000 NLG 1.149
• July 1, 2001 NLG 1.193
• July 1, 2002 €565,44
• July 1, 2003 €585,24
• July 1, 2004 €597,54
• July 1, 2005 €604,72
• July 1, 2006 €615,01
• July 1, 2007 €621,78
• July 1, 2008 €631,73
• July 1, 2009 €647,53
• January 1, 2011 €652,52
• January 1, 2012 €664,66
• January 1, 2013 €681,02
• January 1, 2014 €699,48
• January 1, 2015 €710,68
• January 1, 2016 €710,68
• January 1, 2017 €710,68
• January 1, 2018 €710,68
• January 1, 2019 €720,42
• January 1, 2020 €737,14
• January 1, 2021 €752,33
• January 1, 2022 €763,47
• January 1, 2023 €808,06