Case on “WOZ-cap” – right to property versus right to housing
In October 2023, the Dutch State was sued by the foundation Fair Huur voor Verhuurders (“Fair Huur”, meaning “fair rent”). Fair Huur is an interest group for private landlords. PILP is representing the Woonbond in this case, an interest group for tenants and house seekers. The Woonbond has joined the proceedings between Fair Huur and the State as a third party.
The WOZ cap
In these proceedings, Fair Rent focuses on the so-called “WOZ cap.” The WOZ-cap is an instrument of rent protection, aimed at somewhat curbing excessive rents in the free sector and hence making rental housing in the Netherlands more affordable. It ensures that the WOZ value (i.e.: property value) is less decisive in determining the maximum rent for a housing unit.
To calculate the maximum rent, a point system is used in the Netherlands. The WOZ value of a property affects the number of points that is assigned to a property: the higher the WOZ value, the more points. The number of points determines whether a property falls within the free sector or the regulated sector. With the WOZ value rising sharply in many places over the recent years, maximum rental prices also rose, making rental housing increasingly less affordable. To counteract this development, the Dutch legislature has instituted, among other things, the WOZ cap.
Fair Huur Foundation
Fair Huur has sued the State in a class action lawsuit. Fair Rent argues that the WOZ-cap infringes the property rights of private homeowners, thus violating Article 1 of the First Protocol to the ECHR (the right to the protection of property). In addition, the WOZ-cap would allegedly violate the prohibition of discrimination, because housing corporations would not be equally affected by the measure as private landlords. Fair Huur firstly claims that the WOZ-cap should be declared non-binding.
The Woonbond
The Woonbond acts as an advocate for tenants and house seekers, and is committed to affordable rents and good housing in liveable neighbourhoods. The Woonbond does not agree with Fair Huur’s contentions. Therefore, the Woonbond has asked the court to join the State in this lawsuit. The court has granted the joinder of the Woonbond. The Woonbond is therefore acting as a third party in these proceedings.
Right to housing as a fundamental human right
The Woonbond argues in these proceedings that the right to housing is a fundamental human right as enshrined in, inter alia, article 22 of the Dutch Constitution. Granting Fair Huur’s claims would be a step backwards in the realization of the right to housing. In addition, according to the Woonbond, the WOZ-cap is a measure that serves the public interest, which should prevail over the interests of private landlords.