From January 1, 2023, a maximum annual rent increase of 4.1% will apply to free-sector housing. This was set by the Senate, which passed the law change on December 20, 2022.
The permitted rent increase in the free sector is linked to wage growth, if lower than inflation. For the period from December 2021 to December 2022, inflation was 9.7% and wage growth was 3.1%. This means that the allowed annual rent increase in calendar year 2023 will be a maximum of 4.1% for free-sector housing.
Please note that this allowable annual rent increase of up to 4.1% also applies to houseboat moorings in 2023.
The term free-sector rental housing includes independent housing such as single-family houses, apartments, studios and bungalows, whose initial rental price was higher than the then-current liberalization limit. This means that if the bare rent on the effective date of the lease was higher than the liberalization limit in effect on that effective date, the property falls under free-sector rental housing.
It is important for landlords to keep abreast of the latest developments in rent increases and regulations. Hopefully this information has helped you understand the changes that will be in effect starting in 2023.
