National, provincial and local government have reached agreement on spending €620m to realise 51,000 new homes in the short term, housing minister Kajsa Ollongren has told MPs.

The projects – 27 in total – could not be realised without subsidies because the building costs are too high in terms of preparing the land and public transport connections, the minister said.

Some 14,000 of the properties are social housing, with a rent of below €730. Some 12,000 will have a rent of €700 to €1,000 and 6,000 will be cheap owner occupier properties. Most will target starters and seniors, but some will include student housing.

In total, 32,000 of the new homes are in the category ‘affordable’. The government said projects had to be at least 50% affordable to qualify for financial help.

Industrial sites

Twelve of the projects involve redeveloping old industrial sites, such as the Binckhorst in The Hague. In Rijswijk an old shopping centre will be transformed into 1,400 homes plus working spaces and in Nijmegen, 670 homes will be built close to the railway station.

National government is putting €290m into the projects, which will come from the €1bn fund established last year to boost the housing market.

Experts say the Netherlands needs to build 845,000 homes before 2030 to keep pace with demand.

Local authorities had put forward 52 plans for consideration, and some of which will be resubmitted in October after adaptations are made.