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Thursday, 11 January 2024 - 21:10

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New housing projects are struggling with energy network issues

The problems with the energy network in the Netherlands are increasingly putting pressure on the new construction sector. Construction projects do not receive the necessary connection to the grid in time, meaning new homes sometimes remain empty for up to six months, says the real estate agents' association NVM.

Vice-chairman Chris van Zantwijk of the NVM Housing Department calls the consequences of the problems surrounding the grid connection "disastrous." The NVM does not have precise figures on the number of projects experiencing grid problems, but it does receive signals from real estate agents and buyers. Parts of Almere are struggling with new-build homes being unable to connect to the overcrowded power grid, the municipality announced in November.

According to Van Zantwijk, if the grid connection takes a long time and the move-in of new residents is delayed, this could lead to buyers dropping out. "Not only does it mean something for buyers expectations, but they also have high additional costs in the intervening period," he adds. During the construction of the new home, buyers will have to deal with double monthly costs because the mortgage for the current home continues, and payments for the new home start during construction.

Not nearly as many homes are being built as the outgoing Cabinet had intended, but Van Zantwijk only foresees more problems for the new construction sector with the energy grid if housing construction accelerates "If we were to meet the entire housing demand, this would go wrong," he says.

Reporting by ANP

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