Staying flexible in a jungle of rules

Tim Aalders on staying the course in a changing housing market

The housing market has been under pressure for years, but the real challenge now lies with ever-growing and changing regulations. Yet Tim Aalders remains remarkably level-headed. As residential portfolio manager, he sees daily the impact of policy changes, but also the opportunities created by staying agile. "The playing field is complex, but we move with it. Flexibility is no longer a luxury, it's a necessity."

"Regulatory pressure is not a new phenomenon for us," says Aalders. "We are used to some things by now. Of course it is a shame that so much capital has disappeared from the rental market, but we are staying the course. Our portfolio is built on long-term stable returns. That requires looking ahead, steering sharply and above all: investing in quality, not quantity."

One way we are investing in this is by making our real estate more sustainable and future-proof, with a view to Paris Proof 2040. An ambition that goes beyond the legal standard of 2050. "We consciously choose to rotate parts of the portfolio. This provides space for new, sustainable projects from our own development branch. We are also continuously looking at how we can organize processes smarter. For example, we have digitized the maintenance process through our platform Vorm Living, which allows tenants to contact suppliers directly. That saves time, reduces costs and provides more control."

Still, the impact of new legislation remains substantial, Aalders stressed. "The Affordable Rent Act affects us directly. In some places we have had to decide to sell homes, especially smaller apartments in popular cities that are simply no longer profitable after mutation. This is wry, these are often homes in high demand that are now disappearing from the rental segment. Unfortunately, measures in this area are missing the mark. There is too little attention to the consequences in practice." According to Aalders, the problem lies deeper. "Politicians listen too little to parties who work with residential real estate on a daily basis. In addition to the new rental law, tax measures also come into play, leading to an increasingly unattractive investment climate. This scares off not only Dutch, but also foreign investors, and we desperately need them to get housing construction going."

Despite these bottlenecks, Aalders also sees bright spots, especially in the area of sustainability. "We have a clear ESG strategy toward a CO₂-neutral portfolio, using CRREM methodology. All new acquisitions and development projects must be seamlessly aligned with this. This is not only socially important, but also necessary to keep our real estate portfolio future-proof."

On new projects, more than ever, risks arising from changing regulations are considered. "We build in flexibility, both in management and development. Because if anything is certain, it's that the rules keep changing. Quality pays off, and we are fully committed to that."

Aalders sees cooperation with municipalities as essential, especially with new developments. "In many cases we arrive at workable solutions together. Municipalities often understand very well what we as developers and investors are up against. Water with the wine from both sides, that's what it takes."

And how does he look to the future? "For now it's wait and see. Mona Keijzer seemed to listen a bit more to the market, but with a caretaker government I don't expect much direction for the time being. What the sector needs is peace, clarity and a stable investment climate. Then confidence will return naturally, also from foreign investors. And that is badly needed to really get the Netherlands moving."