Estate agents skeptical of government ambitions in housing market
The Dutch association of estate agents NVM appreciates the Cabinet’s focus on the housing market in its 2023 budget. But estate agents doubt that some of the government’s plans to address the housing shortage will have the desired effect, the NVM presidents said in a statement.
“We are faced with major issues that underpin our society. Housing is a human right,” said Lana Gerssen, NVMB Chair for Housing. According to her, Housing Minister Hugo de Jonge does not lack ambition. “But despite the plans, the new construction of 900,000 homes is flattering and the flow is stagnating.”
According to Gerssen, De Jonge’s plan to regulate the mid-tier rental market will not lead to more housing. “In practice, we see the opposite effect. Investors and developers are reluctant to carry out projects, and this slows down the flow. Additionally, rising construction costs make affordable new construction difficult.
Gerssen is also concerned about De Jonge’s ambition to build demand-driven homes through 2030. More homes are badly needed, and demand is a great guideline. “But 900,000 housing units, demand-driven and ⅔ of them affordable, plus the sustainability challenge of the existing housing stock, that’s not realistic with the current construction costs and the shortage in the labor market. “
Sander Heidinga, president of the business department of NVM, is concerned about the increase in transfer taxes for commercial real estate. “This is hitting investors hard. This has a negative effect on the real estate investment climate. And investors are desperately needed to fund construction projects, he said. “It’s also hurting institutional, residential investors, who are vital to supply in the free-to-let sector.” According to him, this measure will slow down the construction of new housing.