Real estate agents skeptical about government's housing market ambitions

The Netherlands’ association of real estate agents NVM appreciates the focus the Cabinet gave the housing market in its 2023 Budget. But the realtors doubt whether some of the government’s plans to address the housing shortage will have the desired effect, the NVM chairmen said in a statement.

“We are faced with major issues that form the basis of our society. Housing is a fundamental right,” said Lana Gerssen, the NVMB chair for Housing. According to her, Housing Minister Hugo de Jonge doesn’t lack ambition. “But despite the plans, the new construction of 900,000 homes is flattering, and the flow is stalling.”

According to Gerssen, De Jonge’s plan to regulate the mid-level rental market will not lead to more homes. “In practice, we see the opposite effect. Investors and developers are reluctant to realize projects, and that hinders the flow. In addition, the increased construction costs make affordable new construction difficult.”

Gerssen is also concerned about De Jonge’s ambition to build demand-driven homes until 2030. More homes are absolutely needed, and demand-driven is a great guideline. “But 900,000 homes, demand-driven and ⅔ of which affordable, in addition to the sustainability challenge in the existing housing stock, is not realistic with the current construction costs and shortage on the labor market.”

Sander Heidinga, the Business department chair at NVM, is worried about the increase in transfer tax for commercial real estate. “It hits investors hard. It has a negative effect on the real estate investment climate.” And investors are desperately needed to fund construction projects, he said. “It is also harmful to institutional, residential investors, who are vital for the supply in the free rental sector.” According to him, this measure will slow down the construction of new homes.