Amstelveen town council has successfully fined the owner of an apartment who broke regulations requiring her to live in the property herself, the Telegraaf said on Wednesday.

The ruling may have a major impact on other home buyers because it sets a precedent for allowing fines, the paper said. Amstelveen has a policy of requiring people who buy some new property to live in the house or apartment themselves for at least 18 months and the clause is included in sales contracts.

The council fined the woman €50,000 last year for refusing to live in the new Westhove apartment herself and took her to court in December when she refused to pay the penalty.

The aim, Amstelveen alderman Herbert Raat told the paper, is to send a clear signal to property speculators who are buying up homes purely to rent out. ‘Many youngsters in Amstelveen would like to buy a home rather than pay rent to a housing corporation or private landlord all their lives. Your own home is, after all, the best pension.’

Amsterdam is also considering introducing a residency requirement for all new property and the city’s housing alderman Laurens Ivens said the court ruling is a welcome support for the plan.