Local authorities should be given financial incentives to release more land for residential building projects, the government’s macro-economic think-tank CPB says in a new report.

In particular, councils should be allowed to benefit from the added value attached to land allocated for building in the form of an extra tax, the CPB suggests.

The government has set a target of 75,000 new homes every year, but that target was missed by 9,000 last year, according to national statistics agency CBS.

Agricultural land which is earmarked for housing rose from some €6 per square metre to €425 at the end of last year, and a tax on that increase, paid by the developers, would encourage more councils to release land for housing, the CPB told the Financieele Dagblad.

In addition, local authority demands on developers are also having an impact on willingness to build, says CPB researcher Thomas Michielsen.

Councils require high-quality homes with underground car parks, lots of green spaces and often impose height restrictions, he says. But at the same time, ‘councils do not always understand what the effect of their demands is on the price,’ he said.

Social housing

Meanwhile, Federatie Opvang, which focuses on stimulating social and sheltered housing, says there is a shortage of 80,000 rent controlled homes in the Netherlands.

It wants local government, developers and investors to work together to stimulate the construction of at least 15,000 rent controlled homes a year to make sure vulnerable people can find somewhere to live.

In particular there is a shortage of suitable homes for single people, the organisation says.

The waiting list for social housing in Amsterdam – that is a flat or house with a rent of below €720 per month – has risen to 14 years.