Skip to main content

Housing affordability in the Netherlands: the impact of rent and energy costs

Journal of Housing and the Built Environment volume 30, pages 293–312 (2015)Cite this article

Abstract

Energy costs have been rising as well as rents, both in the Netherlands and elsewhere, leading to situations commonly described as ‘housing poverty’ and ‘fuel or energy poverty’. A dwelling may be unaffordable on at least two counts: rents or energy costs that are ‘too high’ in relation to income (excluding cases of ‘too low’ income). This paper measures comprehensively for the first time housing affordability of tenants in the Netherlands with respect to rent and fuel in order to gain insight in the ways this ongoing budgetary commitment can be calculated. Starting point is the expenditure-to-income ratio, which is usually used in the Netherlands to represent the affordability of housing consumption. For 2012 its components—incomes, rents and fuel costs—are separated out. The absence of a socially acceptable benchmark for ‘affordable’ versus ‘unaffordable’ housing and the fact that lower-income households pay relatively more on rent and energy than those with a higher income (Engel’s Law) call for an alternative method to measure affordability. The residual income approach is shown to be useful in identifying households with housing and energy affordability problems, once social norms have been established for the relationship between income, rent and energy expenses. It is concluded that even energy expenses by themselves can push households over the affordability threshold, in the situation where rents are considered as affordable.

This is a preview of subscription content, access via your institution.

Access options

Buy single article

Instant access to the full article PDF.

USD 39.95

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Fig. 1
Fig. 2

References

  • Blijie, B. (2010). Woonuitgaven huurders en kopers. Den Haag: Ministerie van Binnenlandse Zaken en Koninkrijksrelaties.

    Google Scholar 

  • Blijie, B., Groenemeijer, L., Gopal, K., van Hulle, R. (2013) Wonen in ongewone tijden. De resultaten van het Woononderzoek Nederland 2012, Den Haag, Ministerie van Binnenlandse Zaken en Koninkrijksrelaties.

  • Boardman, B. (1991). Fuel poverty: From cold homes to affordable warmth. London: Belhaven Press.

    Google Scholar 

  • Bradshaw, J. (Ed.) (1993). Budget standards for the United Kingdom, Aldershot, Avebury.

  • Bradshaw, J., & Mayhew, E. (2010a). The measurement of extreme poverty, second draft final report. York: The University of York, Social Policy Research Unit.

    Google Scholar 

  • Bradshaw, J., & Mayhew, E. (2010b). Understanding extreme poverty in the European Union. European Journal of Homelessness, 4(December), 172–186.

    Google Scholar 

  • DECC. (2011). Annual report on fuel poverty statistics 2011. London: Department of Energy and Climate Change, London.

    Google Scholar 

  • Freeman, A., Kiddle, C., & Whitehead, C. (2000). Defining affordability. In S. Monk & C. Whitehead (Eds.), Restructuring housing systems: From social to affordable housing? (pp. 100–105). York: Joseph Rowntree Foundation.

    Google Scholar 

  • Fusco, A., Guio, A. C., & Marlier, E. (2010). Income poverty and material deprivation in European coun-tries. Luxembourg: Eurostat/European Commission.

    Google Scholar 

  • Haffner, M. E. A., & Boumeester, H. J. F. M. (2010). The affordability of housing in the Netherlands: An increasing income gap between owning and renting? Housing Studies, 25(6), 799–820.

    Article  Google Scholar 

  • Haffner, M., Boumeester, H. (2014). Is renting unaffordable in the Netherlands? International Journal of Housing Policy, 14(2), 117–140.

  • Haffner, M., Boumeester, H., Dol, K., Goetgeluk, R., Neuteboom, P., Lamain, M. M. V. C., et al. (2008). Woonuitgaven 2002–2006 in beeld. Delft: Onderzoeksinstituut OTB.

    Google Scholar 

  • Hancock, K. E. (1993). Can pay? Won’t pay?’ or economic principles of ‘affordability. Urban Studies, 30(1), 127–145.

    Article  Google Scholar 

  • Heylen, K., & Haffner, M. (2012). The effect of housing expenses and subsidies on income distribution in Flanders and the Netherlands. Housing Studies, 27(8), 1142–1161.

    Article  Google Scholar 

  • Heylen, K., & Haffner, M. (2013). A ratio or budget benchmark for comparing housing affordability across countries. Journal of Housing and the Built Environment, 28(3), 547–565.

    Article  Google Scholar 

  • Hulchanski, D. J. (1995). The concept of housing affordability: Six contemporary uses of the housing expenditure-to-income ratio. Housing Studies, 10(4), 471–492.

    Article  Google Scholar 

  • Kromhout, S. (2013). Woonlasten van huurders. Amsterdam, Rigo: Huur- en energielasten in de gereguleerde huursector.

    Google Scholar 

  • Liddel, C., Morris, C., McKenzie, S. K. P., & Rae, G. (2012). Measuring and monitoring fuel poverty in the UK: National and regional perspectives. Energy Policy, 49, 27–32.

    Article  Google Scholar 

  • Maclennan, D., & Williams, R. (Eds.). (1990). Affordable housing in Britain and the United States. York: Joseph Rowntree Foundation.

    Google Scholar 

  • McConnell, E. D. (2012). House poor in Los Angeles: Examining patterns of housing-induced poverty by race, nativity, and legal status. Housing Policy Debate, 22(4), 605–631.

    Article  Google Scholar 

  • Ministerie van B. Z. K. (2011) Wijziging wet op de huurtoeslag en besluit op de huurtoelsag, Kamerstuk 17-6, Den Haag.

  • Moore, R. (2012). Definitions of fuel poverty: Implications for policy. Energy Policy, 49, 19–26.

    Article  Google Scholar 

  • Nibud, (2011). Budget handboek 2011. Nibud: Utrecht.

    Google Scholar 

  • Priemus, H., & Elsinga, M. (2007). Housing allowances in the Netherlands: The struggle for budgetary controllability. In P. A. Kemp (Ed.), Housing allowances in comparative perspective (pp. 193–214). Bristol: The Policy Press.

    Chapter  Google Scholar 

  • Rijkswaterstaat (2013). Energiearmoede dreigt voor steeds meer huishoudens, Ministerie van Infrastructuur en Milieu: Rijkswaterstraat (http://www.rwsleefomgeving.nl/onderwerpen/lokaal_klimaatbeleid/nieuws/content/energiearmoede/; last accessed 20 August 2013).

  • Ritakallio, V.-M. (2003). The importance of housing costs in cross-national comparisons of welfare (state) outcomes. International Social Security Review, 56(2), 81–101.

    Article  Google Scholar 

  • SHCS (2002). Scottish house condition survey 2002. Reference from Liddell et al. (2012).

  • Soede, A., & Vrooman, C. (2008). Beyond the breadline. A poverty threshold based on a generalised budget approach. The Hague: The Netherlands Institute for Social Research SCP.

    Google Scholar 

  • Stone, M. (1998). Shelter poverty. In W. Van Vliet (Ed.), The encyclopaedia of housing (pp. 534–535). Thousand Oaks/London: Sage.

    Google Scholar 

  • Stone, M. E. (2006). What is housing affordability? The Case for the Residual Income Approach, Housing Policy Debate, 17(1), 151–184.

    Article  Google Scholar 

  • Thalmann, P. (1999). Identifying households which need housing assistance. Urban Studies, 36(11), 1933–1947.

    Article  Google Scholar 

  • Thalmann, P. (2003). ‘House poor’ or simply ‘poor’? Journal of Housing Economics, 12, 291–317.

    Article  Google Scholar 

  • Tunstall, R., Bevan, M., Bradshaw, J., Croucher, K., Duffy, S., Hunter, C., et al. (2013). The links between housing and poverty: An evidence review. York: Joseph Rowntree Foundation.

    Google Scholar 

  • Van den Brakel, M., Moonen L. (2012). Huurtoeslag: wie krijgt hoeveel?. Sociaaleconomische trends (1e kwartaal), 9–19.

  • Weevers, B., E. Martens, S. Kromhout, E. Cozijnsen and J. Scheele-Goedhart (2012). Woonlastenbeleid Metropoolregio. Een onderzoek naar noodzaak en mogelijkheden, Arnhem, BuildDesk Benelux B.V.

Download references

Acknowledgments

We would like to thank Gust Mariën for making the calculations and two referees and the Editors for their helpful comments on this paper. An earlier version of this contribution was presented at the RC43 conference of the International Sociological Association that took place in Amsterdam from 10–12 July, 2013.

Author information

Authors and Affiliations

  1. OTB – Research for the Built Environment, Faculty of Architecture and the Built Environment, Delft University of Technology, Jaffalaan 9, 2628 BX, Delft, The Netherlands

    Marietta Haffner & Harry Boumeester

  2. Centre for Urban Studies, School of Global, Urban and Social Studies, AHURI, RMIT University, Melbourne, VIC, Australia

    Marietta Haffner

  3. CCHPR, Department of Land Economy, Cambridge University, Cambridge, UK

    Marietta Haffner

Authors
  1. Marietta Haffner
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Harry Boumeester
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Marietta Haffner.

Appendix

Appendix

See Tables 9, 10, 11, 12.

Table 9 Percentiles of annual disposable income, based on income for all Dutch households, 2012
Full size table
Table 10 Average monthly expenditures per item for single person households in a rental dwelling, according to the basic, in the comparative and the societal acceptable budget
Full size table
Table 11 Norms for net rent ratio and energy cost ratio based on socially acceptable budget, according to income decile and type of household, 2012
Full size table
Table 12 Share of tenants in the first five income deciles with a minimum income and above in dwellings with a regulated rent, according to energy ratio, income decile, and household type, 2012
Full size table

Rights and permissions

Reprints and Permissions

About this article

Verify currency and authenticity via CrossMark

Cite this article

Haffner, M., Boumeester, H. Housing affordability in the Netherlands: the impact of rent and energy costs. J Hous and the Built Environ 30, 293–312 (2015). https://doi.org/10.1007/s10901-014-9409-2

Download citation

  • Received:

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s10901-014-9409-2

Keywords

  • Affordability
  • Budgets
  • Energy costs
  • Expenditure-to-income ratio
  • Residual income
  • Renting
  • The Netherlands