Local authorities are to be allowed to give priority in newly built housing projects to people already living in the area, the Volkskrant reported on Friday
Home affairs minister Kajsa Ollongren plans to change current housing legislation so that councils can give residents priority, and help make sure people starting on the housing ladder are not disadvantaged, the paper said.
The priority allocation will apply to 30% of new properties costing up to €355,000.
Currently, local councils are banned from prioritising their own residents for housing, apart from in the Wadden Sea islands.
Several local authorities, including Bergen in Noord-Holland and Utrechtse Heuvelrug, told the Volkskrant that they would use the new powers, because they believe newcomers from other cities have been buying up the available homes.
Ollongren has already made it possible for councils to stop investors buying up properties and then renting them out. Amsterdam and The Hague are among the cities which have have already said they will act to make sure people can only buy cheaper homes if they plan to live in them.
The proposal to prioritise locals has now been put out to consultation.
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