Despite the housing crisis, the number of new homes being built in the Netherlands will fall 5% this year, according to a new report by the construction sector economic institute EIB.

This year and next, fewer homes will be built than in 2019, despite the government’s commitment to expanding the housing stock.

The downturn is due to the nitrogen compound pollution crisis, which has halted a number of building projects, the EIB said. In addition, the organisation said, the measures which are being introduced, such as a lower motorway speed limit and cuts in livestock farming, will take time to filter through.

The number of permits for new building projects was also down sharply last year, and those are homes which would have been built this year and in 2021.

Nevertheless, the EIB says that by 2022, production will rise again, with growth of 7%. This would add 70,000 new homes a year to the Dutch housing stock, still slightly down on the 75,000 government target.