Junior finance minister Frans Weekers has agreed to compile a report of all available research on the Dutch mortgage tax relief system, which has come under increasing pressure for distorting the housing market.

While emphasising the government has no plans to change the system – currently one of the most generous in Europe – Weekers agreed to meet senators’ demands for an overview of the research and changes made to the system over the past few years.
The briefing is expected to be completed by early spring.
Earlier this month, the Dutch central bank called on the government to limit the tax breaks for mortgage holders, saying the current system is damaging the country’s financial stability.
In the Netherlands, home owners can fully deduct all the interest paid on their mortgage from tax for 30 years. This, say financial experts, encourages people to take out the maximum loan and make minimum repayments.
The mortgage debt in the Netherlands currently represents 128% of GDP, the central bank says.