More suitable housing with the support of investors

Social housing associations own a large part of the regulated housing market. The core purpose of social housing associations is to provide dwellings for households with a lower income. Municipalities, tenant organizations and a social housing association can make agreements about the sale of parts of the (expensive) stock of social housing associations, and the addition of new dwellings for households with lower income. By this, the stock of social housing associations can be better suited for their target group.

When the maximum reasonable rent is taken into consideration, it is estimated that about 1 million regulated dwelling are of such quality that these houses can enter the non-regulated market. In addition, the current stock of social housing associations does not fully align with the housing requirements of the target group. The current stock consists for 80 percent of family homes, while about 40 percent of their target group consists of single- or two-person households.

The government has created more opportunities for social housing associations to sell housing stock to private investors. The regulations regarding these sales have been significantly reduced, providing private investors with more opportunities to acquire existing complexes of rental homes. Investors can rent out those acquired homes to segments where demand is high (e.g. the mid-priced rental sector). By doing this, investors take their social responsibility and contribute to a more suitable housing stock.

Municipalities, tenant organizations and social housing associations decide together whether and which part of the stock of social housing associations may be sold. In this decision, they take into account any scarcity in the local social rental stock or the mid-priced rental sector.