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Hoge Raad ruling limits WOZ-rent linkages in the free sector

A ruling by the Hoge Raad imposes strict limits on WOZ rent increases in the free sector. Particularly owners of student housing in the historic city centre of Leiden are feeling the consequences.

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Along the narrow canals and cycle paths around the Pieterskerk in Leiden, many owners of student housing are facing sharply increased WOZ values. A recent ruling by the Hoge Raad now imposes strict limits on passing on those value increases to tenants.

Background to the ruling

In recent years landlords applied WOZ increases one-to-one to the monthly rent. A 15 per cent jump in the WOZ value sometimes resulted in dozens of euros extra per month. In the historic city centre, where properties on streets such as the Breestraat often serve as investments, this led to proceedings concerning reasonableness.

The Hoge Raad’s judgment

The Hoge Raad confirms three principles:

1. A WOZ linkage does not automatically constitute justification

A higher WOZ value often reflects speculation rather than improved residential quality. Tenants are not required to contribute to the owner’s investment premium.

2. Tenants may request substantiation per property

Landlords must demonstrate that the value increase is linked to concrete maintenance or neighbourhood development, not merely to a municipal valuation report.

3. Unreasonably onerous clauses are voidable

Clauses without a cap or exception are unreasonably onerous within the meaning of article 6:233 BW and may be annulled.

Impact on tenants

  • Excessive increases above inflation plus maintenance are contestable
  • Amounts overpaid may be reclaimed for up to three years
  • Written objection within six weeks of notification is required
  • Disputes are dealt with by the Huurcommissie or, in the free sector, by the kantonrechter of the Rechtbank Den Haag

Obligations for landlords

Existing contracts:

  • Convert WOZ linkages into an inflation-plus-maintenance formula
  • Keep written substantiation available for every subsequent increase
  • Do not automatically threaten termination upon challenge; that risk has increased

National and local consequences

The ruling forms part of a trend towards stronger tenant protection. In Leiden, with its intensive student housing and busy city-centre streets, many contracts will have to be adjusted. Further restrictions on automatic indexation are expected in 2026.

Steps for tenants in Leiden

Have you received a WOZ-driven increase in the past three years that you considered excessive? Request written substantiation, retain all correspondence and contact the Juridisch Loket Leiden or a specialist. The office of Arslan at Stationsweg 26, 2312 AV Leiden (071 - 5200 200) can assist you. The three-year limitation period under article 3:309 BW begins to run once you could reasonably have been aware of the unlawfulness.