Theory is not the same as practice
Over the last few years, a great deal has been done at both local and national level to safeguard affordability on the one hand and improve the allocation of homes on the other. This has not led to a significant improvement on the rental market.
On the contrary, the investment climate has in fact deteriorated and the proposed rent regulation could even cause it to collapse completely. The idea that the plan would lead to a sizeable, affordable and allocatable mid-price segment - in which initial rents are determined based on the WWS system - may be correct in theory but not in practice.
This line of reasoning takes no account of the options from the perspective of the owner whose property will come under the future regulation.
This is why the proposed rent regulation needs to undergo a complete review. As we said above, it is possible to achieve more, especially in terms of sustainability. Our proposed adjustment to the WWS points allocation for energy labels could:
- Safeguard affordability in a broad context (rent + energy costs)
- Stimulate landlords to make existing homes more sustainable in line with the Paris Agreement
- Preserve the investment appetite of investors for new rental developments.
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