First-time buyers and middle-income earners do not benefit from current sales wave

Most rental properties sold by investors are unaffordable for first-time and middle-income buyers, real estate consultants CBRE concluded in a new report. These groups are, therefore, not helped by the latest sales offers on the housing market.

Selling houses or apartments when the current tenants have left is also known as "selling out." CBRE has investigated that the maximum amount an average household aged between 25 and 35 can afford is "well below" the price of an average terraced house. This is the case in many cities, including Utrecht, Amsterdam and Almere. Open-ended rental homes are, therefore, not more accessible or affordable. Only high-earning first-time buyers would benefit from branching out into the housing market, according to the real estate consultant.

According to CBRE, more and more rental properties are being sold by landlords to private owners. According to the company, this is partly due to higher financing costs for investors and rent regulation, which makes renting out apartments increasingly unattractive. Housing Minister Hugo de Jonge had previously stated that there was no so-called sell-out wave among housing investors.

According to CBRE, people with "key occupations" such as police officers, nurses and childcare workers generally do not have a sufficient salary for an average apartment abroad. At the same time, the housing shortage for these groups is high in cities such as Utrecht or Amsterdam. Only with two full-time working HBO nurses do most apartments come within reach, according to CBRE.

"The housing policy proposed by Minister De Jonge redistributes the same number of homes, but as our research shows, this favors already privileged households," said Thomas Westerhof of CBRE in a statement. "The rental market will become even smaller, more competitive and expensive for first-time buyers, middle-income earners and households with social professions. They are mainly helped by more offered properties."

Westerhof is therefore calling on the government to create an attractive investment climate, smooth planning procedures and better cooperation between the government and market players to ensure more affordable offers.

However, Westerhof is hopeful about the housing market this year. "In 2024, market improvement is on the horizon. Capital that is currently on the sidelines will increasingly find its way back into residential real estate as a result," he said in a statement.