Maximum Rent Increase Rules After Liberalisation in Amsterdam

In Amsterdam's free sector after liberalisation, there are no statutory maxima for rent increases; parties negotiate freely, often annually with CPI +2-3%, but due to extreme housing shortage in the city, increases reach 8-12% in neighbourhoods such as De Pijp and Oud-Zuid. Social rent remains limited to inflation (3.3% in 2024) plus improvements by housing associations such as Ymere or De Key. Transitional rules: first liberalisation year max. 5% for sitting tenants, with scale 1st year 4%, 2nd 5%, thereafter free. Good Landlordship Act (2019) prohibits unreasonable increases; Rent Committee assesses reasonableness upon complaint, particularly relevant for Amsterdam investors. Indexation follows CBS inflation. Tenants sign rent increase proposal or agree tacitly after 2 months. Disputes via Amsterdam district court. Local practice: Randstad scarcity drives Amsterdam free sector to 7-12% increases, with protests by Woonprotest. Municipality of Amsterdam promotes fixed rent periods in contracts via model letters. Fiscal impact: higher rent reduces mortgage interest deduction. During corona, temporary ceilings applied; now the city advocates stricter rules against speculation. Future: EU directive on affordable rent and Amsterdam Housing Construction Agreement may set new limits. This sharply separates Amsterdam sectors.