More bad news on housing as potential buyers get cold feet

Two-thirds of potential home buyers are delaying making a move because of the economic situation and fears about job security, according to a new report by ING researchers.


Uncertainty over the future of the tax break on mortgages, which is likely to be central to the formation of a new government, is also impacting on willingness to buy, ING said.
Housing-for-sale website Funda.nl and mortgage advice group De Hypotheker have also reached similar conclusions, the Telegraaf said on Friday.
Most political parties want to make changes to the tax scheme, which is currently one of the most generous in Europe, allowing people to deduct mortgage interest charges from tax for 30 years.
New homes
Meanwhile, the Netherlands’ biggest mortgage lender on Friday warned problems on the housing market could lead to a housing shortage when the economy picks up again.
Rabobank CEO Piet Moerland told Nos television too few houses are being built to meet demand once the economy begins to grow. ‘Then you end up with a shortage,’ Moerland said.
Currently, some 30% fewer new homes come on the market than a few years ago. Every year the Netherlands has an extra 70,000 more potential home owners but only 45,000 new homes are being built, Moerland points out.
This shortage will eventually drive up house prices in the Netherlands when the current financial crisis ends, Moerland said. House prices have fallen 15% since 2008 and earlier this week the central bank warned a further 9% drop could be on the way, if agreements to limit the mortgage tax break go ahead.
Estate agents have also warned about the potential damage caused by the lack of new homes, but the NVM association says this is still some way off, Nos reports.
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