VVD unveils plan to let starters save up to €75,000 tax-free for home purchases
The VVD has presented a housing plan aimed at helping starters and middle-income earners buy a home, as many young people in the Netherlands struggle to secure mortgages due to soaring prices, AD reports.
VVD Tweede Kamer member Peter de Groot outlined the proposals in a new policy document released ahead of October’s elections. Among the main points is the introduction of tax-free savings accounts dedicated to purchasing a home. “Many people are therefore forced to look for rental housing, while they would actually prefer to buy,” De Groot told AD.
Under the plan, starters would be allowed to save up to 75,000 euros in a separate bank account without tax liability. Currently, single individuals have a tax-free savings threshold of about 57,000 euros.
“In Germany, this system already exists and it works well,” De Groot said. “There, many young people have a separate bank account to save for a house. That money may also only be used for a house. There is no reason why that could not be done here.”
De Groot stressed that policy has so far mainly focused on building affordable rental units, but he argued that the government must also support aspiring homeowners. “Most people do not want to rent but to buy, to build something up for later. With the current housing shortage, the government must help them better,” he told AD.
The VVD wants to significantly expand the National Affordable Homeownership Fund (Fonds Nationaal Betaalbare Koopwoningen), which was launched last month with 100 million euros in government funding. That fund reimburses part of the purchase price of a home for starters and middle-income earners. At present, the maximum amount a starter can receive is 70,000 euros, which is expected to help roughly 1,500 buyers.
“That is far too few,” De Groot told AD. He argued that billions of euros should be added to support more people entering the market. “The fund can be filled with money from pension funds or from the National Mortgage Guarantee fund. It is not wasted money, because a loan always comes back when someone moves again,” he said.
According to De Groot, the fund is vital because average home prices have risen so high that starters often need a combined annual income of 90,000 euros to secure a mortgage. “Look online: a home quickly costs 300,000 euros. If you can only borrow 260,000 euros, the difference can be covered by the fund. You can pay the money back later when you start earning more, or repay it from the surplus value when you eventually sell,” he said.
The VVD also wants to introduce a special starter mortgage with a repayment term of 40 years instead of the standard 30. De Groot said this would reduce monthly costs for buyers who often have lower incomes and extra expenses, such as childcare.
However, he stressed the party does not support allowing higher borrowing limits because this would only push house prices up further and create additional risk for banks if a financial crisis arises.
In addition, the VVD wants to reinstate a version of the so-called “jubelton,” a tax-free gift that parents can provide to help their children buy a home. The previous 100,000 euros exemption was abolished last year because it contributed to rising home prices amid scarce supply.
De Groot said that risk could be limited by capping the exemption at 30,000 euros. “That is about the buyer’s costs for an average house at this time. It can make just enough of a difference to bring a mortgage within reach for young people,” he said.
Last week, the Netherlands Court of Audit advised abolishing the mortgage interest deduction. The VVD rejects that recommendation and wants to maintain the current arrangement. De Groot confirmed that if the VVD takes part in the next coalition talks, the party will try to implement the proposals.
