Several cities in the Netherlands such as Rotterdam, among others, are starting to introduce an obligation to self-occupy. The owner-occupancy obligation is being introduced as buyout protection against real estate investors. This owner-occupation obligation will apply from January 1, 2022 on the basis of the law "Acquisition protection and extended possibilities for temporary rental". The buyer of the property must live in the property himself and may not rent it out for a period of four years.
With this, the municipalities want to prevent real estate investors from buying homes with the aim of renting them out. The municipality of Rotterdam calls the measure "good for the livability of vulnerable neighborhoods." Temporary occupancy would lead to "an unpleasant residential neighborhood where residents do not know each other and do not say hello."
How does the buyout protection work?
The option is given to municipal councils to include buyout protection in the housing ordinance. The municipal council must substantiate why the use of buyout protection is necessary, appropriate and proportionate to maintain or promote livability in the neighborhood in question. Buyout protection applies only to low-cost and medium-cost housing. Which homes fall under low-cost and medium-cost varies by municipality. A municipality itself must substantiate on the basis of the situation up to which WOZ value owner-occupied houses fall into the cheap and medium-priced segment. In principle, the regulation lasts until January 1, 2025. An evaluation will be carried out within three years of the introduction of the law. It is possible that the buyout protection will be extended.
The buyback protection applies only to owner-occupied homes acquired after the introduction of the scheme and to homes that were in rented condition for a period of less than six months on the date of delivery to the new owner. Properties that had been rented for more than six months at the time of transfer before the buyback protection was introduced are not covered.
Rotterdam
From January 1, 2022, 16 neighborhoods in Rotterdam will be subject to a self-occupancy requirement for low and middle segment housing with a WOZ value of up to €355,000.
The buyout protection applies in the 16 districts below:
Source: Rijnmond
Amsterdam
The City of Amsterdam is also working on a self-occupancy obligation for existing homes. In Amsterdam, the city council wants to introduce buyout protection for homes with a WOZ value of up to €512,000, substantially higher than in Rotterdam. The city council will vote on this plan in February 2022. When the plans in Amsterdam finally go through, about six out of ten Amsterdam homes will fall under the buyout protection, according to research by NOS.
Other cities
Other cities are also introducing buyout protection. A survey by the Volkskrant reveals that 130 municipalities are considering instituting a self-occupancy obligation for existing homes after January 1, 2022. Some municipalities have already proposed concrete plans, such as The Hague, while others are going to investigate the possibilities. A change in the law will make buyout protection measures for existing homes possible from Jan. 1, 2022, in addition to the self-housing obligation for new construction. Municipalities in the Netherlands are allowed to designate their own neighborhoods or districts where buyout protection will apply. So we will have to wait and see which other cities will follow.
Exceptions
There are a few exceptions to the rule. For example, a house may be rented out to immediate family members or temporarily rented out when staying abroad, for example.