Home ownership almost out of reach for people with average incomes

First-time buyers with an average income are finding it virtually impossible to buy a home because prices are continuing to rise, mortgage advice group De Hypotheker said on Thursday.

Fewer than 5% of the properties on offer are an option for people earning €36,500 a year – which would give them a maximum mortgage of €169,000, De Hypotheker said. Last year, 6.3% of homes would have been suitable for people on average incomes.

In both the greater Utrecht and Amsterdam areas, around 1.5% of homes for sale would be an option for average earners. In Rotterdam, they would have a choice of 5% and in Groningen 19%.

Two income households, earning a combined wage of €61,000, would be able to buy some 32% of the homes currently on offer, and would be able to borrow just under €300,000.

Despite the tight housing market and high prices, mortgage providers agreed 114,000 new mortgages in the second quarter of this year, according to research by consultancy IG&H.

The figure is the highest since 2008, but is inflated by people switching mortgages and boosting their loan to pay for home improvements, IG&H told the AD.

‘It would appear that people are now reviewing their mortgages ahead of any possible interest rate right,’ spokesman Joppe Smit told the paper.