The government can help the Dutch housing market by reforming the way the rental housing sector operates, according to the International Monetary Fund.
The IMF has researched the housing market crisis in the Netherlands, Spain, Ireland and Denmark – all countries where house prices rose sharply prior to the economic crisis and then fell by at least 25%.
It concludes that reforming the current system of rent controls on social housing would help eradicate waiting lists and constraints on the development of privately-owned rental housing.
If the rental market was made more attractive, fewer people would take on major debts by buying a property, the IMF concludes.
The government has recently taken steps to allow landlords to put up the rent on social housing more sharply for high earners who technically are not entitled to rent-controlled property.
It has also reduced the amount people can borrow when buying a home to try to stop excessive lending.
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