Xior Dutch government reconsiders social housing measure

Last Friday, a memo from the Dutch Government changed the potential impact for Xior of the earlier announced rent freeze for 2025 and 2026. The Spring Memorandum proposed a temporary freeze on rent indexation for social housing. The bill now proposes that the measure will apply only to housing corporations. Private and commercial landlords are excluded from this regulation. In the 1Q25 report, Xior estimated the maximum impact of the rent freeze on indexation is around € 640k, without potential compensation. It is clear that The Netherlands is suffering from a massive housing crisis, especially in the affordable living segment. The government must have realised that their decision would limit new investments and make things even worse. The impact is not that material for current income, but Xior has a significant residential landbank in NL. This evolution is definitely positive over the long term.