Review of the ban on temporary rental contracts: Possible abolition after one year

Since the introduction of the ban on temporary rental contracts less than a year ago, growing doubts have emerged regarding the effectiveness of this measure. Both a majority in the House of Representatives and Minister Mona Keijzer (Housing) are considering revisiting the ban. The minister fears that the law may worsen the housing crisis rather than solve it.

The ban, which came into effect in July 2024, was the result of a legislative proposal from the PvdA (Labour Party) and ChristenUnie. The proposal aimed to prohibit temporary rental contracts and standardize fixed-term rental agreements to provide tenants with more security. At the time, this plan received broad support in the House of Representatives. However, concerns are now growing over the impact of this law, especially in light of the housing crisis.

Barriers for Landlords
Merlien Welzijn, a member of the NSC party, is one of the strongest advocates for a revision of the law. She argues that the ban is a hindrance to landlords, particularly small-scale landlords such as those renting out a room in their home. They may be discouraged from renting out a space due to fears of long-term commitments. According to Welzijn, the law is perceived as a major obstacle because temporary contracts are often necessary in a dynamic rental market.

Minister Keijzer has also previously spoken out against the ban. She highlights that many landlords are withdrawing their properties from the rental market and selling them due to increasingly stringent legislation. This is not only due to the temporary rental contracts but also because of the heavy tax burdens faced by private landlords, such as on second homes, and the restrictions imposed by the Affordable Rent Act.

Keijzer has stated that the legislation for landlords needs to be revised and supports the idea of re-evaluating the ban on temporary rental contracts. She will soon send a letter to Parliament with proposals to improve the position of landlords and bring more balance to the housing market.

Concerns Over Tenant Security
However, the opposition is concerned about the potential consequences for tenants if the ban is lifted. MPs such as Pieter Grinwis from the ChristenUnie warn that tenants will once again have to move from one temporary contract to another, without any security for the future. GroenLinks and PvdA also stress that the housing crisis should not be used as an excuse to undermine tenants' rights.

The debate therefore goes beyond just the temporary rental contracts. The broader housing crisis, with the enormous demand for affordable housing, remains at the heart of the issue. Welzijn emphasizes that the problem needs to be addressed with a broader perspective: "Hundreds of thousands of people are currently unable to find housing."

Exceptions Remain
Although the ban on temporary rental contracts came into effect on July 1, 2024, there are some exceptions. Temporary contracts can still be made in certain situations, such as when the landlord plans to rent the property to a child in the future, or when tenants are temporarily living together or marrying and want to test the relationship first. These exceptions provide some flexibility, but the question remains whether this will be enough to stabilize the housing market.

The coming months will reveal whether there is sufficient political support to revise the law and what the implications will be for both landlords and tenants in the Netherlands.