Solutions for the housing market
We have made a number of proposals to solve the problems in the Dutch housing market, and we list the most important ones below.
More new homes
Many new homes will have to be built in the years to come and the central government should play a coordinating role in the process. In particular, more affordable rented housing in the non-subsidised sector is needed. This will offer an alternative to those entering the housing market and not yet able to buy, giving them the opportunity to save toward the purchase of a home in due course without having to take on huge debts.
Phase out tax benefits for homeowners
There is a difference between buyers and renters. People who own their home often have lower housing costs than people who rent in the private sector due to tax benefits. We advise the government to further phase out financial benefits for homeowners. For example, by moving home equity from Box 1 to Box 3 for income tax purposes. The government could then use the resulting revenues to lower income tax, for example. Of course, these tax benefits should be phased out gradually, so homeowners do not suddenly face higher costs.
Lower the maximum mortgage
In the Netherlands, we have high mortgage debts compared to other countries. The government makes it financially attractive to borrow money to buy a house. In the Netherlands, you can take out a mortgage up to 100% of the home's value. This means that many Dutch households have high mortgage debt, which makes them financially vulnerable. Indeed, if house prices fall sharply, homes may go under water. High mortgage debt also leads to high volatility in our economy. We recommend gradually reducing the maximum mortgage from 100% to 90% of the house price.
No more measures that increase spending margin
The government has recently taken several measures that allow first-time buyers in particular to make higher bids. Examples include the more widely available special loans for first-time buyers and the abolition of transfer tax for this group. These measures are well-intentioned, but they actually lead to even higher house prices in the longer term. If you have more money to spend on a house, you can pay a higher price. And if more people do so, housing prices will rise further.