Mixed feelings about right-wing parties' plans for tackling housing shortage

The PVV, VVD, NSC, and BBB’s housing plans have elicited mixed reactions from the sector. Housing corporations and homeowners are pleased that the new coalition plans to address the housing shortage by making it easier to build more homes, but tenants think the plans do not go far enough. Plans to scrap homeowners’ obligation to replace old central heating boilers with heat pumps when they break was also met with mixed feelings from homeowners and the technology sector.

The housing associations which represent the most significant portion of social housing in the Netherlands believe that the need to tackle the housing crisis was recognized in the broad strokes of the coalition agreement. The plans build on the aspects of the existing policy that have already been implemented, and include strong ideals to realize the construction of additional homes, said Aedes, the organization representing the housing associations.

Aedes was especially pleased with the policy that an average 30 percent of new homes constructed must be put on the market as low-cost social housing rental units, according to the coalition parties’ plans. More land will also become available, and obstacles to construction and development will be removed, Aedes said.

The organization also noted that permitting and regulatory procedures will be accelerated if the new coalition sticks to their plans, and the limitations of the electricity grid will be tackled. “Measures that are all desperately needed,” Aedes said.

However, tenant rights lobbying group Woonbond said earlier Thursday that it sees “far too little ambition to tackle the housing crisis” in the coalition agreement. “PVV, VVD, NSC and BBB opt for higher rents and less construction of new social housing rentals, while homeowners remain very well protected,” said the Woonbond.

Currently, municipalities are obligated to meet a 30 percent quota for social housing in their jurisdictions, but two-thirds of Dutch municipalities have missed the mark, caretaker Housing Minister Hugo de Jonge said in 2022. “There is a significant chance that municipalities will build fewer social rental homes now that they are allowed to deviate from the minimum requirement,” Woonbond said on Thursday.

“Social housing landlords are also allowed to increase rent annually with inflation. This does not take into account peaks in inflation, and insufficient efforts are made to improving affordability.”

According to the Woonbond, rental policy in the coming years should aim to ensure that tenants spend a lower percentage of their income on rent. “Based on this agreement, this will not happen in the coming years.”

The Homeowners Association (VEH) sees several policy choices in the main lines agreement that are beneficial for homeowners and home seekers. However, the interest group also has concerns about the cancellation of the netting scheme for solar panels without an alternative incentive policy. “There are also no measures to tackle the growing foundation problem,” the interest group said. VEH is positive that more will be done to reduce the housing shortage by accelerating construction production.

VEH pointed out that the netting scheme for solar panels will abruptly expire as of 1 January 2027. “There is no question of a gradual phasing out or alternative stimulating measures. The Homeowners Association regrets this because it puts a brake on the stimulation of sustainable energy.”

VEH is pleased that homeowners and buyers will not be obligated to make their homes more sustainable with a heat pump or to improve their homes' energy labels within a certain time. “VEH is committed to encouraging sustainability rather than imposing obligations. People then have control over the sustainability of their home,” said the organization.

The coalition allocated 1 billion euros annually to reduce the housing shortage. More space will become available for large-scale and small-scale construction. Construction production must increase by shortening and accelerating permit procedures and limiting appeal options. “It is also positive that two-thirds of the new homes to be built must be affordable with the proceeds of a tax on the increase in the land value.”

VEH is also pleased that the energy tax on natural gas will be adjusted gradually, providing households with average consumption with an increasing tax benefit of up to 50 euros in 2030. “For many households, this can alleviate the high energy costs somewhat. The association is satisfied that special attention is paid to the higher energy costs that households experience when they're connected to a heating network.”

The technology sector, on the other hand, is not pleased with the plan to no longer oblige homeowner to buy a heat pump to replace their central heating boiler. “Installers and manufacturers have invested tens of millions in training and production capacity,” said chairman Doekle Terpstra of the trade organization Techniek Nederland. “This decision puts an entire sector in serious trouble.”

According to plans by outgoing Minister Hugo de Jonge (Public Housing and Spatial Planning), homeowners would be required to purchase a hybrid heat pump from 2026 when they replace their central heating boiler. A hybrid heat pump is a combination of a heat pump and a central heating boiler. PVV, VVD, NSC, and BBB scrapped that obligation.

Terpstra finds that incomprehensible. “As a sector, we have made agreements with the government and expect the government to fulfill those agreements. This is an ill-considered decision.” He wants to discuss this point with the formation parties as soon as possible. “This really needs to be taken off the table.”

Techniek Nederland did call it positive that the parties in the outline agreement say they want to stick to the existing climate goals and existing policy in the field of energy and technology. The trade organization is also pleased with the announced investments in infrastructure and housing construction.