Largest Dutch cities want Cabinet to guarantee housing construction can continue

The Cabinet must enact additional measures to ensure that the construction of new homes continues now that inflation is high, and staffing levels are low, said the five largest cities of the Netherlands in a letter to Housing Minister Hugo de Jonge. They suggest the temporary introduction of a premium paid at the start of construction projects, and a construction guarantee scheme backed by the national government.

These incentives can sometimes give a project just enough of a push for building to begin after all, according to the responsible lawmakers of Amsterdam, Rotterdam, Eindhoven, The Hague and Utrecht.

The aldermen often see hesitation in the construction of projects that are already "fully developed," they said. "The underlying cause is the current unrest and uncertainty that the market conditions and policy changes entail," they told De Jonge.

In the letter, they said building under current circumstances presents an even greater challenge than the significant hurdles that already existed.

"Developers must know that they will get their money back at the end of the ride, otherwise they will not build. We are already in a housing crisis," and a construction crisis will compound the situation, said Amsterdam Alderman Reinier van Dantzig.

"That is why a collaboration between cities and the government on extra measures is necessary so that we can cope with headwinds in the construction industry," he continued. "Everyone knows someone who is looking for an affordable home. That is precisely why the construction of affordable homes should not come to a standstill."