Economic downturn hits house builders

The number of new homes being built in the Netherlands is going down and will not reach the government’s 80,000 target next year, says construction sector association NVB.

This year some 81,000 homes will come on the market but the figure will fall to 72,000 next year and 62,000 by 2010, director Nico Rietdijk tells news agency ANP.
The increase in mortgage interest rates, declining consumer confidence and tougher banking rules on loans have led to fewer new homes being sold, Rietdijk says.
As a result, building firms and developers are also cutting back. In addition, builders are facing rising costs, he says. The cost of building a house has risen 7% over the past year, ANP reports him as saying.

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