In comparison with West European countries, in the Netherlands relatively more old people live in residential homes. Since 1970 the policy has been focussed upon the reduction of its importance in the range of housing facilities for the elderly. Financial arguments determine more and more this tendency. They also are the objective of the recent proposal to alter the Law on Old People Homes. The proposed measures comprise also that the residential home is transferred from the domain of housing accommodations to that of intramural health care. There are many protests against the intended measures. It is uncertain what the outcome of the coming political debate will be.