Financially-troubled housing corporation Vestia is halting its renovation plans, despite telling tenants their homes would be brought completely up-to-date.
Vestia, the Netherlands’ biggest housing corporation with 89,000 homes, says the halt in renovations is necessary because the company can no longer borrow money, reports the Algemeen Dagblad.
In April, the Rotterdam based company announced a halt to the building of new housing stock and an increase in rents for new tenants to just under the legal maximum.
‘There is now only financial room for the regular maintenance,’ the company told the AD, without saying how long the situation would continue or how many tenants are affected.
Vestia ran into difficulty after speculating on the financial markets on interest rates. It has since had to give banks €1.5bn in security for loans and will have to find more cash if interest rates fall further.