RSH TrendWatch: Resistance to 'Hugo Rules' Spurs Sale of Rental Properties by Investors

Jochem Agterberg, a real estate agent from The Hague, is deeply concerned about the growing number of property sales by housing investors due to government regulations. This concerning trend comes at a time when the pressure on the Dutch rental market is steadily rising.

Agterberg's protest involves using bright green signs that he places on the windows of rental properties with an unequivocal message: 'This property will never be for rent again!' This is his way of resisting the sale of rental properties by investors, which he attributes to the so-called 'Hugo Rules.'

The 'Hugo Rules' refer to tightened tax regulations that have been in effect since this year, resulting in significantly higher tax burdens for landlords. Additionally, the increased interest rates are making borrowing money considerably more expensive for investors.

However, what Agterberg primarily objects to are the proposed rent regulations announced by outgoing Minister Hugo de Jonge (Housing, CDA). These rules are intended to reduce rents, but they are not yet in effect, and their implementation is uncertain due to upcoming elections.

Anticipating Stricter Regulations: Investors Sell Rental Properties Despite Market Concerns

Nevertheless, many property investors have preempted the rules. They are anticipating this new regulation, even though there is little enthusiasm for these measures. The consequence of these developments is an even greater scarcity in an already tight rental market.

Agterberg emphasizes that, due to these regulations, it is becoming increasingly unattractive to retain rental properties. This is illustrated by the fact that, of the last ten properties where tenants left, nine of them were sold rather than re-rented.

Challenges in the Dutch Rental Market: Increasing Property Sales and Market Dynamics

Rental properties, despite high rental prices, are appearing on the market more frequently. Buyers benefit from this, but Agterberg underscores that the situation in the rental market is alarming.

In summary, Agterberg's protest symbolizes the concerns within the Dutch rental market, where regulations and tax changes are affecting market dynamics and the future of rental properties.

Source: FD | Financieel Dagblad, Erik van Rein | Read full (Dutch) article: Hoe een Haagse makelaar zich verzet tegen de ‘Hugo-regels’ voor beleggers (fd.nl)

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