The housing valuation system is the points scheme by which the quality of a rented home is assessed. The number of points determines the maximum permitted rent. Since the Affordable Rent Act the system applies not only to social housing but also to the mid-market segment.
Legal basis
The system is set out in the Residential Rents Decree, with Annex I containing the points table. Points are awarded for floor area, kitchen and sanitary facilities, outdoor space, the property tax value and the energy label. The Affordable Rent Act, in force since 1 July 2024, made the system mandatory up to and including 186 points, bringing the mid-market segment within rent price protection; municipalities enforce this under the Good Landlordship Act. Above that threshold the rent is free. Article 7:249 of the Civil Code entitles a tenant to have the initial rent assessed by the Rent Tribunal within six months of the start of the tenancy; for mid-market homes that period has been extended under the new Act.
How it works in practice
Landlords must supply a points calculation at the start of the tenancy. If it is wrong, the tenant can go to the Rent Tribunal, which reduces the rent to the maximum matching the points. The energy label carries significant weight, which also makes sustainability measures financially attractive. Transitional rules apply to existing contracts: for ongoing tenancies a reduction is in some cases possible only on the tenant’s application.
Where it goes wrong
Landlords use an outdated property tax value or a label not updated after renovation. A second error is failing to supply the points calculation at the outset, which is separately punishable. Third, tenants let the assessment period lapse.
Related terms
The system connects to residential rent protection, service charges and the energy label.
Unsure about the permitted rent? Our real estate law specialists recalculate the points.
