Is the Dutch Model Applicable in Turkey for Rents?

Of course, the problems of all countries in the world are not the same. For example, the biggest threat in our geography when earthquake In Indonesia, people are most afraid of the tsunami. For this reason, we can see different housing systems in every country.

Last year, with the law passed in the parliament, in our country rent increase limit of 25 percent was determined as. Another system that was discussed in the parliament before this application was the ‘Dutch model’. Although there is a similar application to the 25 percent rent increase limit, the Dutch model differs in many respects. Let’s take a look at the details of this system that guarantees low and middle income.

The Dutch government decided some time ago to take action against unbalanced house rents.

“Does this house deserve this price?” In this new system, which was introduced in order not to hear his words again, houses were scored and divided into two main groups: social and private houses.

According to criteria such as the age of the building, energy efficiency, number of rooms and how many bathrooms it has. low rated housing social housing; more high rated buildings whereas private residence was determined as.

Thus, a limitation was imposed on the rental price for lower quality ‘social housing’.

A point limit of 736 euros was set for social housing and the rent increase was under state control. Thus, security was provided for low and middle income people. of the state “This house is rented for 736 Euros, even if the stone cracks” no one said house would not be able to rent it out for a higher amount.

In private residences, there was no limitation for the rental price. This kept the free market economy alive in the real estate market. However, this system also had some shortcomings and problems.

Imagine you are looking for a house to rent. Do you prioritize homes that are labeled as “THIS IS CHEAPER” in capital letters by the government, or do you look at homes that you know are more expensive?

Of course, we all gravitate towards relatively cheaper homes. This is exactly what happened in the Netherlands; regardless of income level Everyone turned to social housing. This led to the depletion of social housing in a short time.

Still, social housing has impacted home sales.

Social housing was indeed a security for middle- and low-income people. Because they were giving the house they lived in the money they really deserved. However, this situation soon reduced home sales.

For this reason, the Netherlands made a new arrangement in the system last year.

With the new regulation, the age required to apply for rental assistance has been reduced from 23 to 21, and new incentives have been provided to those who will buy a house for the first time. However, the rent amount of 736 Euros, which is the ceiling limit for social housing, has increased in 203. It was increased to 808.06 Euros.

Thus, more houses have been put into ‘social housing’ status. This meant new homes that could be preferred by citizens who could not find social housing. It is also suitable for high-income people living in low-rent homes. income-related rent increase A more equitable housing system was provided.

As we have just mentioned, another shortcoming of the Dutch model was the lack of social housing. Therefore 40 percent of the houses to be built will be social housing. It was decided. At the same time, the age limit required for rent assistance was reduced to 21.

The 25 percent limit applied to the rental price in our country is similar to the Dutch model.

In our country, while the rent increase is limited, in the Netherlands it is directly limit on rent case. For this reason, this system applied in our country cannot provide a guarantee like the Dutch model.

So, is it possible to completely switch to this system in our country?

As you know, we experienced a pandemic that greatly affected our lives, and immediately after the pandemic, the rent increase limit was imposed. Many landlords had not raised rents during the pandemic, and a percentage increase cap was introduced. It garnered a great response. Of course, this arrangement was somewhat effective against exorbitant prices for renters.

At the point we have reached, especially in big cities such as Istanbul, even this application has been insufficient we can see. Because there were also hosts who tried to take advantage of the vulnerabilities of the application. We continued to see exorbitant prices as there was no restriction on the rental price.

Unfortunately, even ‘urban transformation’ is not possible in our country.

Within the scope of urban transformation, all over our country unsafe homes that need refurbishment demolished and replaced by new ones; but even this practice is opposed by many people or they want to own more houses in exchange for their house destroyed by urban transformation.

If we move to a practice similar to the one in the Netherlands, we are currently If a limit of 10 thousand TL was determined for a house rented for 20 thousand TL, This will cause many homeowners to revolt.

Moreover, for the implementation of such a system, people’s homes to state control must leave. Many homeowners may not want this, and we may see discussions just like urban transformation.

Considering the number of low and middle income people in our country, we will need a lot of social housing.

This means that social housing may not be enough for low- and middle-income people. In other words, even if you want, in houses with more affordable prices. You cannot sit. Because high inflation in our country causes fluctuations in the markets and increases in prices.

When such a system is adopted, the determination of the rental price by the state can cause problems and cause problems. can trigger reactions. As a result, even this well-functioning system in the Netherlands still has its shortcomings.

Could we all live in detached houses?