Like last year, municipal housing costs such as waste tax will again increase sharply this year, according to a study of the 40 largest Dutch municipalities by the center for research of the economy of local governments COELO. This year housing costs for the average tenant will increase by 5 percent to 363 euros, and for the average homeowner by 4 percent to 734 euros, RTL Nieuws reports.
Dutch between the ages of 20 and 45 who rent a home in the free sector, pay so much on housing costs that they can't afford to build up savings, Rabobank researchers Nic Vrieselaar and Carlijn Prins concluded after surveying over 10 thousand customers that fall in this group, AD reports.
The housing ratio - the total housing costs as a percentage of disposable income - was higher for tenants in the Netherlands than for homeowners last year. Tenants spent an average of 38.1 percent of their disposable income on housing costs, while homeowners spent an average of 29 percent, Statistics Netherlands reported on Thursday.
This coming year the municipal housing costs will increase by an average of 3.4 percent. In 73 municipalities those costs are increasing by more than 10 percent. The waste tax in particular is increasing significantly, according to homeowners association VEH, NU.nl reports.
On average the municipal housing costs, which include waste tax and sewage tax, amount to 774 euros. Homeowners in Bloemendaal face the highest costs. Property owners there have to pay an average of 1,330 euros to their municipality, 200 euros more than last year.
The municipal housing costs, sewerage and waste taxes, and property taxes are rising "very substantially" this year, according to the annual study by the research center for the economy of the lower governments COELO, NU.nl reports.
The national government is increasing waste tax by 139 percent this year. Waste processors pay waste tax for the garbage that is incinerated or landfilled, and this cost is passed on the municipalities. As a result, municipalities have 3.5 to 4 percent more costs this year.
Amsterdam is offering support to 10 thousand residents who have a low income, but relatively high rent, the municipality announced in a press release on Wednesday. The city is dedicating 3.5 million euros per year for the next three years to this.
"We see that Amsterdammmers increasingly often end up in financial troubles because their fixed costs are simply too high. With this arrangement, we can help a bit", Social Affairs alderman Arjan Vliegenhart said.
The number of Dutch households with a relatively low income and relatively high rent increased significantly in the past years - from 8 percent in 2009 to 18 percent last year. In the same period the households living in the reverse situation - high income, low rent - decreased by 10 percent from 28 percent to 18 percent, according to figures Statistics Netherlands released on Thursday.