Income-related rent policy
Since July 2013, the maximum rent increase is based on the tenant’s household income. The maximum increase consists of two components: inflation (based on last year’s inflation rate) plus a surcharge of 1.5 percent, i.e. 4.0 percent Additionally, a higher rent increase is allowed for households on incomes exceeding € 34,085 who occupy dwellings intended to provide affordable housing for low-income households. Thus, authorities hope to stimulate them to move up the housing ladder.
The maximum rent increase for 2014 is:
- incomes =< € 34,085 2.5% + 1.5% = 4.0%
- incomes € 34,085 - € 43,602 2.5% + 1.5% + 0.5% = 4.5%
- incomes >= € 43,602 2.5% + 1.5% + 2.5% = 6.5%