Housing valuation system 2024
Do you want to rent out your property in the private sector? The first step is to determine the rental price using the Housing Valuation System. This system is a points-based method that determines whether the rental price is capped or if a free market price can be asked. This difference is also referred to as the social, regulated sector (middle rent), and the free or liberalized sector.
Points Calculation for Rental Property
To determine if a property can be rented at a free or regulated rental price, a points report is created. Points are assigned based on various criteria such as the surface area (heated living spaces), level of luxury of the kitchen and bathroom, outdoor space, energy label, amenities, and WOZ value. he boundary between the free sector and regulated sector is determined by the government. Currently (from January 1, 2025), this boundary is € 1.184,82, which corresponds to 186 points.
In other words, if the total points are less than 187, the rental price is capped at the amount according to the Rent Price Table, which is always € 1.184,82 or lower per month. If the rental price exceeds € 1.184,825 (i.e., at least 187 points), the rental price can be freely determined.
The new segment limits for the entire year 2025 are as follows.
- Low segment: up to and including 143 WWS points. From 1 January 2025, this corresponds to a rental price of up to €900.07 per month.
- Middle segment: from 144 to and including 186 WWS points. From 1 January 2025, this corresponds to a rental price of €900.07 to 1,184.82 per month.
- High segment: from 187 points. From 1 January 2025, this corresponds to a rental price of €1,184.82 per month.
Preparing a points report requires some effort, but it is feasible if you have an energy label, an accurately measured floor plan, and the WOZ value. Various templates can be found online, although not all are updated to the latest guidelines. It is advisable to have the points calculation (and possibly the preparation of an energy label) performed by a professional.
JLG can carry out this points calculation for you, starting at € 195 including VAT.
WOZ Value in Points Calculation
As of May 1, 2022, the new housing valuation system is in effect, which is particularly important for properties that were previously liberalized. When these properties are rented out again, they may fall into the regulated sector. The difference lies in the points assigned for the WOZ value. It means that the share of WOZ points for properties that, according to the housing valuation system, have 187 points or more is capped at 33%.
In practice, points are first assigned to the property. If the property has 187 points or more, it must be calculated what percentage of the total points consists of WOZ points. If this percentage is more than 33%, the WOZ points must be adjusted downwards so that the number of WOZ points does not exceed 33% of the total points. Applying this cap may result in a property not having enough points to be rented out in the liberalized sector. Read more about the WOZ cap here.
Points System for the Private Sector
Formally, the points system applies up to 250 points, equivalent to a base rent of € 1608,68 (as of January 1, 2025). However, the government has determined that the boundary for the private sector is € 1.184,82, equivalent to 186 points (as of January 1, 2025). In other words, the rental price can be freely agreed upon from 187 points.
There are three different sectors:
- Low segment: up to and including 143 WWS points. From 1 January 2025, this corresponds to a rental price of up to €900.07 per month.
- Middle segment: from 144 to and including 186 WWS points. From 1 January 2025, this corresponds to a rental price of €900.07 to 1,184.82 per month.
- High segment: from 187 points. From 1 January 2025, this corresponds to a rental price of €1,184.82 per month.Excessive Rent in the Private Sector
What are the consequences if the rental price is too high? If rented out for a private sector or market-conform rental price (above €1,184.82/187+ points) and the rental price is timely reviewed by the Rent Tribunal, they may decide to retroactively lower the rent to the legal maximum according to the actual number of points (WWS). For an indefinite-term lease agreement, the rent is reviewable up to 6 months after the start date of the lease agreement. For a temporary lease agreement up to a maximum of 24 months based on BW art. 271 paragraph 1, the reviewability applies throughout the lease period + 6 months if the lease agreement transitions to an indefinite term.
Note! A temporary lease agreement is no longer the norm as of July 1, 2024, and is only usable in specific cases.
Private Sector Rent Check
Suppose a rental price of € 2.000,- per month is agreed upon for a property. The tenant has the rental price reviewed 4 months after the start date, and it turns out the property only has 184 points. The maximum allowable rental price is then € 1171,54. In other words, nearly half of the originally agreed-upon rental price. Therefore, it is essential to have the points correctly checked. Curious about the regulations regarding rental? Read more about the rules for renting out a property.
JLG can carry out this points calculation for you, starting at €195 including VAT.
Frequently Asked Questions
Do you have questions about the Housing Valuation System?
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