News - November 29, 2012

Accommodation crisis looms

New rent regulations disastrous for Idealis. 'Wageningen disproportionately hard-hit.'

If the Dutch cabinet agreement goes ahead as planned, it will mean the end of student housing as we know it in the Netherlands. So says Jan Harkema of Idealis in response to the agreement, which includes the already notorious property tax rule linking the rental of a house to its tax valuation. This will cause the rents for student housing to plummet to such a degree that student housing providers will go under, according to student housing branch organization Kences. The organization also warned that this rule will put paid to plans for building new student accommodation. This prediction seems to be coming true already: Duwo, the biggest student housing provider in the big cities in the west of the country, has already suspended building plans.
Wageningen student housing provider Idealis will also lose 'millions' in income through this change to the law, says Harkema. He emphasizes that property in Wageningen has a lower market value than comparable buildings in the big cities. 'For this reason, Idealis will be disproportionately hard-hit.' One solution could be to exempt student housing from the new ruling. The lobby for this is already in full wing, Harkema confirms.