As purchase agents, we often help clients who want to buy a home as an investment to rent out. To explain the “Woningwaarderingsstelsel” (Housing Valuation System), here’s what you need to know.

The Woningwaarderingsstelsel is a point-based system used to set the maximum rent for a property. It seemed like a good idea but can lead to issues. The system gives points based on the size of the home, number of outlets, and energy label. A property needs 187 points or more to qualify for the free rental market. For example, a studio under 50 m² with an A++ energy label might rent for €1,800, while a 75 m² apartment with an E label might be limited to €1,000 per month.

For many homeowners, the rent they can charge doesn’t cover their mortgage, taxes, and service costs. As a result, many decide to sell instead of rent, which reduces the number of homes available for rent.

Renters are feeling the impact. Rental prices keep rising, and no one is benefiting. As rents go up and homes are sold, more people stay with their parents longer or remain in small apartments. This makes it harder to move in with a partner or start a family.

Buying a home also comes with challenges. You need savings to cover extra costs like taxes and notary fees. More homes are coming onto the market, but the shortage is still so big that overbidding has become common—sometimes making us raise an eyebrow.

If you’re thinking about buying, make sure to budget for all the costs, stay realistic, and work with a local agent. It might be the best plan for the long run.