Project to sell temporary, flexible homes not getting off the ground

NHG (National Mortgage Guarantee) is temporarily halting preparations for “flexible housing purchases,” also called flex purchase. The organization, together with the government and market participants, investigated whether people could purchase flexible homes on land designated for temporary use and with a 30-year mortgage. But too few municipalities could provide a relocation guarantee for the home, so the project has been paused.

The idea was intended as an affordable new option for first-time buyers in the owner-occupied market. Flexible homes on land designated for temporary use are currently primarily rented out.

If this type of housing were to go on sale, there would need to be a location available for at least 15 years and a guarantee from the municipalities that a new location would be available for the home after that. However, research shows that too few municipalities can offer relocation guarantees when the temporary use expires, according to the NHG.

The NGH, an organization best known for mortgages with a safety net in case people can no longer afford them, investigated whether it could reduce the uncertainties surrounding financing for flexible housing, for example, by covering residual debt in the event of uncertainty regarding relocation. The NHG concluded that it can reduce the financing uncertainties.

However, due to a lack of guarantees, there is no prospect of large-scale projects being implemented. That makes it difficult for lenders to provide financing. “It’s a shame, because we are ready to actively contribute to reducing the housing shortage among first-time buyers through this initiative,” said NHG director Roald van der Linde.