The Dutch Rental Market
For the Dutch housing market the RentalCal project will focus on the interaction between the ongoing rental market reform (a reduction of the share of regulated social housing) and energetic refurbishment of the existing housing stock.
The Dutch rental housing stock is rather old (75% has been built pre-1980), and dominated by social housing (over 80% is social housing). The Dutch government is keen on reforming the housing market, and transfer some of the existing social housing stock to the non-regulated sections. At the same time, this unique dominance of social housing, which is governed by around 400 local social housing associations, offers large scales of economies to trigger energetic refurbishments.
1 Policy goals
The Dutch government, both national and local, is very keen on stimulating investments in energetic upgrades. Various subsidy programs have been launched to stimulate landlords to improve the energy efficiency of their housing stock.
Building codes for new construction are strict and ambitious, energy labels have been implemented on January 2008 to raise awareness, and vast subsidy schemes are made available to finance the upfront investments in long-term energy savings around the house.
2 National housing stocks
2.1 Housing stock and typology overview
Overview on the housing typologies based on the housing typology of TABULA/EPISCOPE, last updated on 02-09-2014, http://episcope.eu/building-typology/country/nl.html.
- Dutch homes tend to be of high quality. An average Dutch home offers over 105 square meters of floor space, spread over four rooms. Due to the high quality standards, homes are rarely demolished, and can easily last for over 100 years.
- New construction numbers are low. Less than 1% of existing stock is being added every year with new construction.
- Energetic performance data of the housing stock.
Total energy consumption of private households by energy commodity.
Subjects |
Energy consumption (in PJ) private households |
|||||
Periods |
1995 |
2000 |
2005 |
2010 |
2011 |
2012 |
Energy commodities |
PJ |
|||||
Total energy commodities |
454.94 |
432.35 |
424.61 |
478.84 |
404.72 |
429.25 |
Primary coals |
0.23 |
0.20 |
0.20 |
0.23 |
0.16 |
0.20 |
Petroleum products |
6.17 |
3.65 |
3.79 |
4.37 |
3.08 |
3.68 |
Lpg |
1.42 |
0.94 |
1.00 |
1.15 |
0.82 |
0.97 |
Other kerosene |
0.69 |
0.56 |
0.58 |
0.67 |
0.45 |
0.56 |
Gas/diesel oil |
4.06 |
2.15 |
2.21 |
2.55 |
1.81 |
2.15 |
Natural gas |
402.39 |
372.03 |
343.90 |
406.70 |
315.95 |
337.88 |
Electricity |
65.10 |
72.04 |
78.35 |
82.61 |
82.71 |
83.68 |
Heat |
6.89 |
6.07 |
7.81 |
11.36 |
9.64 |
10.50 |
© Statistics Netherlands, Den Haag/Heerlen 1-6-2015
Distributed amount of energy labels in the Dutch rental market by year of construction, measured in 2011 (A is energy efficient, G is energy inefficient)
Dwellings with energy label: |
A, B |
C, D |
E, F, G |
Year of construction: |
|
|
|
1960-1970 |
16 904 |
199 885 |
182 221 |
1971-1980 |
15 031 |
235 265 |
111 068 |
1981-1990 |
47 100 |
338 803 |
19 707 |
1991-2000 |
70 076 |
121 402 |
2 134 |
2001-2010 |
83 426 |
12 072 |
215 |
>2010 |
172 |
2 |
- |
© Statistics Netherlands, Den Haag/Heerlen 1-6-2015 |
· Quantification of the housing stock
BAG - Netherlands 2013 |
Total |
Single-Family House |
Multi-Family House |
Stock private rental sector |
991674 |
450279 |
541395 |
Stock social rental sector |
2289198 |
996144 |
1293054 |
Sub total: rental sector stock |
3280872 |
1446423 |
1834449 |
|
|
|
|
Total housing stock |
7449480 |
4876850 |
2572630 |
Source: ABF Research - Systeem woningvoorraad (Syswov), http://syswov.datawonen.nl/ |
Housing Stock Netherlands 2013 |
|
|
|
|
Total housing stock |
Single-Famliy House |
Multi-Family House |
Total |
7 449 274 |
4 875 452 |
2 573 822 |
Year of construction: |
|
|
|
1000 - 1850 |
77 264 |
31 544 |
45 720 |
1850 - 1905 |
256 253 |
140 363 |
115 890 |
1905 - 1925 |
431 096 |
273 724 |
157 372 |
1925 - 1945 |
684 525 |
463 079 |
221 446 |
1945 - 1955 |
370 240 |
254 605 |
115 635 |
1955 - 1965 |
802 225 |
508 103 |
294 122 |
1965 - 1975 |
1 298 193 |
875 736 |
422 457 |
1975 - 1985 |
1 134 886 |
799 379 |
335 507 |
1985 - 1995 |
1 002 666 |
697 402 |
305 264 |
1995 - 2005 |
825 526 |
542 149 |
283 377 |
2005 + |
545 505 |
277 952 |
267 553 |
unknown |
20 895 |
11 416 |
9 479 |
Area: |
|
|
|
2-15 m² |
11 873 |
1 487 |
10 386 |
15-50 m² |
331 188 |
31 716 |
299 472 |
50-75 m² |
1 109 626 |
178 349 |
931 277 |
75-100 m² |
1 789 277 |
935 202 |
854 075 |
100-150 m² |
2 843 660 |
2 477 240 |
366 420 |
150-250 m² |
1 092 360 |
1 011 675 |
80 685 |
250-500 m² |
217 333 |
199 494 |
17 839 |
500-1000 m² |
46 840 |
38 749 |
8 091 |
unknown |
7 117 |
1 540 |
5 577 |
© Statistics Netherlands, Den Haag/Heerlen 1-6-2015 |
|
2.2 Ownership structure
- The Dutch housing market contains over 7 million dwellings, of which around 55% are owner-occupied
- The rental housing market is currently dominated by social housings, which has a market stake of over 80%. This rental market structure is, however, currently part of a large reform that is targeted at increasing the non-regulated portion of the rental housing market.
3 Energy retrofitting
3.1 Stakeholders
Energetic retrofits are commonly undertaken in stakeholder coalitions. Social housing associations have been keen on taking the lead and involving large construction firms and (local) government subsidies.
‘Stroomversnelling’ (Highcurrents) and ‘Energysprong’ (Energyleap) are two examples in which these coalitions are stimulated using government support. In both cases, first mover advantage is being nurtured using coordinated efforts. Here local landlords cooperate with construction firms to create the scales of economies needed to make large scale retrofits financially sound.
3.2 Rental Markets
The Dutch rental market is dominated by social housing that is targeted at the lower end of the market. Dutch social housing is designed to provide affordable housing for those who are not capable (economically or socially) to find proper housing without the support of associations.
A large fraction of this rental housing stock has been built in the post-war period, when the rebuild after the war started and when Dutch society grew massively due to the baby-boom generation. As a result a lage fraction of the current stock dates from pre1980 when building codes were less strict and energy efficiency standards were low.
As rent levels tend to be low across the lower end of the housing market, the share of utility (energy) bills in the total monthly dues is rather high. Hence, retrofitting rental housing will not only benefit society at large, but also the affordability of long-term housing for economically restricted households.
3.3 Financing and regulatory environment
Today, the largest part of the retrofit bill is paid by the landlord. Using green lease contract some of the future energy savings can be used to finance this investments. Furthermore, research shows that energy efficiency results in a sales premium, another source of future compensation for the upgrade expenses. The government stimulates the investment using both direct subsidy programs, and indirect financing advantages.