The Netherlands needs 10,000 new starter homes a year, landlord group says

The Netherlands needs a minimum of 10,000 new starter homes at a maximum sale price of 260,000 euros, the Dutch homeowners association VEH said in an appeal to Public Housing Minister Hugo de Jonge. The association appealed to the minister because it believes that young people must have new opportunities to enter the housing market. VEH has therefore launched a petition to draw attention to the position of first-time buyers. The association is also organizing a campaign in their favor during the Lowlands festival this weekend.

De Jonge wants to build 900,000 rental and owned homes over the next eight years, two-thirds of which must be affordable for first-time buyers. Unlike VEH, the Minister believes that the line defining affordability should be set at 355,000 euros. VEH said newly built homes around that price are still unaffordable for first-time buyers.

“For this, they must have a minimum annual income twice the average (76,000 euros). Owning a home is therefore becoming impossible for more and more young people.”

Karsten Klein, advocacy director at VEH, says deals need to be made on building truly affordable homes to begin with, “without falling into false solutions that no one expects, like container homes or the proverbial broom closets. and chicken coops.” This is why the association would like the Minister to build 10,000 truly affordable new houses each year.

According to the association, young people with average incomes should be able to take their first step on the housing ladder. But since house prices have risen much faster than incomes, this is increasingly unlikely.

VEH has set its measure at 260,000 euros because two-income couples who together earn one and a half times the average (57,000 euros) can obtain more than 250,000 euros in mortgages, provided there is no debts or other financial obligations. They must then pay the additional costs associated with the purchase of a house themselves. Klein said: “With a $260,000 house, you’re in line with people’s income levels.”

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