Single-income first-time buyers have better chances on the housing market this year

The chances of single-income first-time buyers in the housing market improved significantly in the past year. That is especially true for single people in sectors where the collective labor agreement wages rose considerably, like healthcare and education. They can now borrow much more to buy a house, De Telegraaf reports based on an analysis by the consultancy chain Van Bruggen and price comparator Independer.

At the beginning of 2023, a teacher buying their first home could get an average mortgage of up to 175,000 euros. Now, that is 204,000 euros. If they buy a home with an A or B energy label, they could loan up to 214,000 euros.

The maximum mortgage is even higher when you take into account that first-time buyers also bring their own money. According to figures from the Mortgage Data Network, Netherlands residents push approximately 42,000 euros of their own money into buying their home. “That would mean a single teacher buying their first home has approximately 256,000 euros to spend if they buy a home with an energy label A or B,” Marga Lankreijer of Independer told the newspaper.

According to the Independer, single home seekers’ income improved by an average of 7.6 percent last year. Van Bruggen noted that the group of single people buying a home is growing, and that will likely continue this year. “In addition to the increase in income, affordability is increasing due to the declining mortgage interest rates and more favorable mortgage standard,” Oscar Noorlag of the advisory group told the Telegraaf.

On the downside, home prices are starting to rise again, partly canceling the gains made by single-income teachers and healthcare workers looking to buy their first home. “Prices are expected to continue to rise, possibly by more than 5 percent. Nevertheless, it is worthwhile to reassess how much mortgage you can get. Buying a home will be within reach for more single-income households in 2024,” Noorlag said.

Couples looking to buy their first homes gained less ground on the housing market in the past year. According to Noorlag, the joint income of home-seeking couples has risen less rapidly on average than that of single-income households. “The new mortgage standards are also less favorable for some couples than for singles,” he said.