Despite concerns surrounding the introduction of the Affordable Rent Act, which has led many private landlords to sell off rental properties due to low returns, Rabobank is moving forward with a significant investment in mid-range rental housing. The bank has announced a €1 billion investment in the Housing Fund of its subsidiary, BPD, to construct approximately 3,000 new rental homes.
Carlo van Kemenade, director of Retail Nederland at Rabobank, emphasized the bank’s commitment to addressing housing shortages: "We want to help people realize their housing needs. Not just with mortgages, but also by ensuring that more homes are added." According to the bank, the return on this investment remains sufficient despite regulatory changes.
This is not Rabobank’s first foray into mid-rent housing. In 2019, the bank made an initial €1 billion investment in the BPD Housing Fund, which has already resulted in the construction of 1,400 rental homes, with 1,300 more currently being built.
Tak Lam, fund director at BPD Woningfonds, highlighted the importance of this investment, particularly for groups that fall between social housing and high-end rentals: "With this new investment, we are able to add sustainable new-build homes and offer them to starters, families, and seniors who do not qualify for social or expensive rent, or for whom purchasing a home is out of reach."
BPD Woningfonds has ambitious plans to expand its portfolio to 15,000 mid-range rental homes by 2030. Achieving this goal will require around €5 billion in total funding, of which €2 billion has already been secured through Rabobank. While Rabobank is currently the sole investor, there is potential for the fund to open up to other investors in the future.
The effects of the Affordable Rent Act on the mid-rent sector are still being closely monitored. Recent data shows that nearly 5,000 rental properties were sold in the quarter before the law took effect, with private landlords being the primary sellers. The Dutch Land Registry will now track these trends quarterly, and the new Minister of Housing, Keijzer, has indicated that the government is keeping a close eye on the situation.
