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The council's main focus of opposition is tenant inequality. The freeze would apply to some 2.3 million tenants in housing corporation dwellings, but not to around 500,000 tenants in privately owned social housing. The Housing Ministry said including private landlords in the freeze would be "unworkable," though the Council said picking and choosing could be challengeable in a court of law.
"You're causing one tenant to be saddled with a rent increase while another similarly situated tenant does not. That is hard for a court to justify," the Council wrote.
Process faults and economic risks
The legislative process was rushed and not fully completed, because of pressures of time concerning coalition negotiations, the Council stated. It also raised constitutional issues, pointing out that compensation to housing companies might not recoup all their losses, possibly violating property rights and dampening new housing investment.
The government has promised to build 100,000 new homes a year, but lower rental income could put this figure at risk. Already, housing corporations have initiated legal proceedings and have a court hearing set for Wednesday.
Minister Keijzer Responds
The criticism was admitted by Mona Keijzer, the minister for housing, who has said she is putting together a formal response for the cabinet and coalition leaders. She called the Council's comments "a strong recommendation," but she has not said whether the proposal will be modified or postponed.
