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The Affordable Rent Act came into force on 1 July 2024. What does this mean for home sharing, for both current and new rental agreements? We already wrote about this in #28 of the Housing Journal.
New definition of independent living space
An important part of the Affordable Rent Act is the simplification of the home valuation system. In that context, the definition of independent living space has also been changed. Until now, a living space was considered independent when it had its own access and essential facilities such as the kitchen and bathroom. Most of that remains the case, but a relevant addition has been made.
According to the new definition, a home is only independent if it:
- is occupied by one or two persons, or
- by three or more people who maintain a sustainable communal household.
If this is not the case, the home falls under the valuation system for non-independent living space. This has consequences for the maximum rent, which is then set lower and no longer falls under the standards of liberalized rental properties.
“The revenue model of Friends contracts is under pressure: tenants can claim room rents, while landlords are left with higher costs.”
Does it also apply to existing rental agreements?
The law makes no distinction between new and existing agreements. There is no transitional law for the new definition. In theory, this change therefore also applies to current leases, such as “Friends contracts” where more than two adults rent an independent home together.
If there is no sustainable communal household, the rent can be qualified as unindependent. This could have major consequences for existing rental situations: lower rents, lower returns for landlords, and more protection for tenants.
Leniency from the Rent Committee
On 4 November 2024, the Rental Committee ruled that the new definition does not apply to leases concluded before 1 July 2024, so in principle, the law only applies to new agreements. However, there is an exception: if the rent is above the liberalization limit, while the house actually falls into the regulated segment according to the points system, a tenant can still request a rent reduction. This is possible until July 1, 2025 at the latest.
In the explanation of the law (Official Gazette 2024/194, p. 43/88), the new definition is presented as a clarification. Judges and the Rent Committee had used this distinction for some time.
Broad interpretation
In practice, the Rent Committee looks at more than just the number of residents. Also things like:
- mutual agreements between tenants,
- agreements between tenant (s) and landlord,
- who took the initiative in concluding the lease agreement,
- the method of payment of rent,
take into account when qualifying as independent or unindependent. This is evident, among other things, from recent rulings (case numbers 2415969 and 2415971).
The Rental Committee has indicated that it will continue to apply this broad review — even for agreements after 1 July 2024. In particular, structures where several adults who did not know each other previously are on one contract are examined critically.
Still a lot of uncertainty
The term “sustainable communal household” is not explained in the explanation of the law. The Council of State has also previously highlighted the vagueness of this standard and the associated legal risks (feature W04.24.00064/I).
In practice, the sharpened definition appears to be primarily an anchor point within a broader assessment, rather than a hard dividing line. Whether this approach will hold up with the subdistrict court is still unclear — no court decisions are known at this time.
Corten De Geer is closely monitoring developments.
