Rent Price Liberalisation Threshold in Leiden: what does this mean?

Rent Price Liberalisation Threshold: what does this mean?

The rent price liberalisation threshold is a threshold value in Dutch tenancy law that determines whether a dwelling falls under rent price regulation or whether the rent price can be freely determined. From 2021, this threshold has been increased, meaning more dwellings in Leiden and surrounding areas no longer fall under social rent rules. Understand how this rule works and what it means for your rent price in Leiden.

What is the rent price liberalisation threshold?

The rent price liberalisation threshold is a statutory threshold value that indicates whether a dwelling is considered a social rent dwelling or private sector. When the rent price is below this threshold, specific rules apply such as the points system (see our article on the points system), maximum rent increases and protection against unreasonable increases. Above this threshold, the rent price can be freely determined by the landlord, also in Leiden.

Legal basis

The rules regarding the rent price liberalisation threshold are laid down in:

• Housing Allowance Act (article 1, paragraph 2, sub a): determines the threshold values for social rent.
• Maximum Rent Increase Act: regulates how much the rent may increase for social rent dwellings.
• Housing Act: defines the categories of rental dwellings (social rent, other rent, private sector).

Current threshold values (2024)

Since 2021, the threshold values have been increased to remove more dwellings from social rent. The current threshold values are:

• € 879.66 per month for an independent dwelling.
• € 808.06 per month for an independent dwelling (e.g. standard dwelling with 2 bedrooms) in the private sector.
• In Leiden, local factors such as the rent price index may have an influence, but the national thresholds apply primarily.

Important: When the rent price is higher than this threshold, the dwelling is no longer considered a social rent dwelling. This means that the landlord can freely determine the rent price and that you have no right to, for example, the points system or maximum rent increases. In Leiden, with a tight rental market, we see many dwellings just above this threshold.

How is the threshold determined?

The rent price liberalisation threshold is adjusted annually by the Statistics Netherlands (CBS) and the government. The calculation is based on:

• The rent price index: a measure of the development of rent price levels in the Netherlands, including regions such as Leiden.
• The average rent price in the private sector.

Difference between social rent and private sector

What does this mean for you as a tenant in Leiden?

Whether you fall under rent price regulation depends on:

1. The amount of your rent price: is it below the liberalisation threshold?
2. The type of dwelling: social rent dwellings from housing associations in Leiden, student dwellings or private sector have different rules.
3. The date of your tenancy agreement: old contracts may still fall under previous rules.

Practical examples in Leiden

Example 1: Social rent dwelling
You rent a dwelling for €750 per month in Leiden. This falls under social rent, because the price is below €808.06. You are entitled to:

• A maximum rent increase according to the Good Landlordship Act.
• Application of the points system upon inspection.
• Housing allowance if your income allows it.

Note: If in doubt about your rent price in Leiden, check the threshold via Rijksoverheid.nl or contact the Rent Tribunal or District Court of The Hague, Leiden Location.