Housing corporations post a loss
05-11-2009
The Netherlands' 430 housing corporations posted an average loss of €1.2m last year, the first time the sector has failed to make a profit since 1996, according to news agency ANP.
The loss is due largely to the negative effect of government measures, strengthened by the economic crisis, sector organisation Aedes was quoted as saying. 'There have also been incidental cases of mismanagement,' Aedes said.
Aedes said unless the government takes urgent action to reform the housing market, the social housing sector could disappear altogether. Government regulations, tough rules on rent increases and rising construction costs were make it increasingly difficult for corporations to invest in cheaper housing, Aedes said.
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