By our economics editors
08 Jun 2023 at 14:32
From July, people who rent a home from a corporation will pay an average of 2.4 percent more than now. For about 600,000 households, the rent will go down, to spare them in times of high inflation.
This was reported by trade association Aedes on Thursday.
Housing associations are allowed to raise rents every year in July. A poll by Aedes among nearly two hundred corporations shows that they raise rents slightly less than the maximum 2.6 percent. The increase means that those who now pay 500 euros per month will pay 12 euros more per month from July onwards.
Aedes points out that the increase is smaller than average wage growth. As a result, most tenants spend a slightly smaller part of their income on rent.
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Vulnerable households see rents falling
For those with a relatively high rent and a low income, the rent will drop once. This should ensure that vulnerable households can continue to pay their bills. These are people who pay a minimum of 575 euros per month in rent and have an income that does not exceed 120 percent of the social assistance benefit.
About 600,000 households are in such a situation and can therefore look forward to a reduction. They will pay an average of 58 euros less from next month.
The research by Aedes also shows that many corporations do not increase rents for homes with a low energy label. Those who live in such a house have recently been hit hard by the sky-high prices for gas and electricity. To prevent these households from getting into further trouble, four out of ten housing associations do not raise the rents for these people, if at all.