House prices will fall around 5% in the coming period but the drop could be even greater if the government does not take action, according to the estate agents’ association NVM, reports the Financieele Dagblad on Tuesday.

NVM chairman Ger Hukker says the forecast price reduction is a ‘healthy adjustment’ and that the housing market is ‘not in complete crisis’ at present. However, things could deteriorate unless ‘the right steps are taken’, he said.
A variety of possible measures have been proposed including a reduction in value-added-tax on construction materials and a 50% cut in the tax paid when houses are sold.