More people don't qualify for social housing, can't afford buying

In 188 Dutch municipalities, some households do not qualify for social housing but can't afford to buy a home. And there are often no free sector rentals available. This was the case in only 13 municipalities six years ago, a study by data collector Colliers showed. Roughly 200,000 people are affected, NU.nl reports.

According to researcher Frank Verwoerd, the main reason for this explosion is the skyrocketing home prices in the affected municipalities. "The income limit for social rent is 40,000 euros, so there is no difference there. But rising house prices have a major impact," he said. "In 2015, you could buy a house with an income on the social rent limit for just over 155,000 euros. In the meantime, that house is worth 270,000 euros, but with an income on the limit, you can only buy something for 185,000 euros."

According to Verwoerd, the 200,000 people who can't afford private sector rents or an owner-occupied home often end up staying longer with their parents or in their student home. "Or they move n with friends so that they can share the cost. So they do end up somewhere, but it's not an ideal situation," he said to the newspaper.

The researchers believe that the most significant problems can be solved by building more homes and introducing some demand-reducing measures to push house prices down. "Although this has to be done step by step so as not to make the problem bigger and not to cause major fluctuations in housing," Verwoerd said. 

Colliers proposed gradually reducing borrowing capacity from the current 100 percent of the purchase price to 90 percent. The mechanism with which parents can donate a certain amount tax-free to help their children buy a home should be abolished. And the Cabinet should also consider scrapping the mortgage interest deduction, which allows homeowners to deduct the interest and other mortgage-elated costs from their taxes, by 2030.