Purchase protection in Haarlem: can you still buy to let?

26 jul.

It has stirred quite a bit in the world of real estate investors: the Purchase Protection Act introduced by the government as of January 1, 2022. The Purchase Protection Act aims to discourage buy-to-let investments. The extent to which you, as a real estate investor, are affected depends on the municipality in which you rent out your property. How does that work exactly?

What is the Purchase Protection Act?

The Purchase Protection Act provides municipalities with the option to establish a permit for the rental of affordable and moderately priced homes in certain neighborhoods. If you don't get that permit, the property cannot be rented out for the first four years after purchase. And if you do get that permit, strict rules still apply. For example, long-term rental is also prohibited even with a permit. The law currently applies until January 1, 2025, and will then be evaluated and possibly extended.

Rental Permit

In some cases, a permit can be issued for renting out a property in an area where purchase protection applies:

if the property is rented to first- or second-degree family members
if the property is part of a combination property and has no separate entrance
if the property is rented for a maximum of one year and the owner has lived in the property for at least one year
if the property is purchased by a housing corporation

Municipalities may impose additional exemption rules as long as they are appropriate to the situation in the respective municipality or neighborhood.

What is the purpose of purchase protection?

More and more starters and middle-income earners are having difficulty finding an affordable home to buy. This is partly because many homes for this target group are being bought by real estate investors. Starters and middle-income earners are thus competing with investors for the same type of housing: apartments and smaller homes. Purchase protection aims to change this. By discouraging renting out, more homes remain available for owner-occupancy.

Doubts about the effectiveness of purchase protection

However, not everyone believes in the effectiveness of the measure. The Purchase Protection Act also results in fewer rental homes being available for people who cannot or do not want to buy a home yet. It is expected that this will lead to a significant increase in rental prices. Because municipalities have different views on the effectiveness of purchase protection and its potential negative effects, some municipalities have implemented the measure (partially) while others have not.

Which homes are covered by purchase protection?

Each municipality therefore decides for itself whether to implement the Purchase Protection Act and, if so, in which neighborhoods. Because purchase protection entails a limitation of property rights, a municipality must also justify its introduction. For example, there must be a shortage of housing in a particular neighborhood, or a decreased livability due to excessive renting out. Each municipality also defines the term "affordable and moderately priced homes" itself. Usually, the threshold is around a WOZ value of 355,000 euros – the value limit also used by the National Mortgage Guarantee. Municipalities where the average home price is higher may deviate from this.

What about existing rentals?

Purchase protection only applies to homes purchased after the introduction of the regulation (this varies by municipality). Note that the date of signing the purchase agreement is not decisive, but rather the date on which the ownership deed is registered in the land registry. In the following two cases, you as a landlord are not hindered by purchase protection:

if you bought or rented out a property for rental before the introduction date of purchase protection in your municipality.
if you have purchased a property where tenants have lived for more than six months.

In both cases, you also do not need a permit if you want to rent out the property again.

Does the Purchase Protection Act apply in Haarlem?

Haarlem was the first municipality in the Netherlands to introduce purchase protection for the entire city on February 1, 2022. This decision is based on research showing that in recent years, more and more homes have been bought by investors and fewer by starters. In Haarlem, the regulation applies to homes up to a WOZ value of 389,000 euros.

What are the consequences of purchase protection for landlords?

Simply ’just’ buying a property to rent out is no longer possible in the Netherlands. If you plan to invest in real estate, it's important to be well informed about the regulations in the area where you intend to rent out. Do you want to rent out a property in Haarlem or its surroundings? Koops Makelaardij is an officially certified rental specialist and can tell you exactly whether this is possible in your case and, if so, under what conditions.

We are always up to date on market developments and legal regulations.

We delve into your specific situation, goals, and wishes, and provide tailored advice.

We can assist you throughout the entire rental process.

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