Ministers review housing reforms following CDA threat

Cabinet plans to reform the housing market, including reducing mortgage tax relief, are being overhauled by ministers in an effort to get the Christian Democrats on board, the NRC said on Thursday afternoon.

Sources told the paper housing minister Stef Blok needs to get the CDA on side in order to guarantee the changes will be passed in the upper house of parliament. The Labour-Liberal coalition does not control a majority of seats in the senate.

The CDA said earlier this week it would block all efforts to shake up the rental housing sector unless the cabinet pledged investment in kick-starting the housing market in general.

Extra taxes

Central to the government’s plans is the decision to charge housing corporations extra taxes, which will rise to €2bn by 2017. The levy is essential to ensure the cabinet meets EU budget deficit targets.

The CDA opposes this extra charge. It also wants the government to soften plans to reduce mortgage tax relief.

MPs are debating housing market developments with Blok on Thursday afternoon. Thursday’s debate centres on Blok’s plans to make social housing tenants pay higher rents if they are technically earning too much to live in the property.

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