Home owners, local councils call for more action on house sales

The local authorities organisation VNG and home owners lobby group VEH have both urged the government to take more action to stimulate home ownership, as house prices continue to fall.


The VNG says the recent decision to slash property transfer tax to 2% is a useful gesture but is doing nothing to help the housing market to recover.
It wants the government to reverse spending cuts for local authorities and housing corporations so that more can be done to help people get on the housing ladder.
In particular, cuts to the urban renewal budgets should be scrapped because this money is a useful way of generating extra private sector involvement, the VNG says.
Tax cuts
Junior finance minister Frans Weekers said in response that the effect of the tax reduction will not be fully felt until October’s housing market statistics are published.
Meanwhile, home owners want the government to make it easier for double income families to take out a mortgage. They calculate that new rules introduced in August mean a single income household can borrow more than a couple.
The restrictions mean a household with two people earning €20,000 a year can borrow a maximum €157,892 while a household run on a single income of €40,000 can borrow nearly €185,000.

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