Buying a house in a Dutch city centre is possible only for those with substantial savings or those with rich parents, according to a report by the Netherlands central bank DNB, quoted by the NRC on Tuesday.

People seeking housing in the large cities often need their own capital to buy, the DNB said. This is especially true in Amsterdam where buyers usually put up between €50,000 to €70,000 to buy a house or apartment. Since 2013, more than 25% of buyers paid in cash, without the need for a mortgage, the report said.

The tight property market with very few housing units for sale combined with very low interest rates – whereby it does not pay to save – plays a major role, the report says. In addition there is very little in the upper end of the rental market available.

In March, property research group Calcasa said the Keizersgracht in Amsterdam has 255 houses worth over €1m, making it the most expensive street in the Netherlands.