The issue of foundations is the next big issue facing the housing market in the Netherlands, so what do home buyers need to think about, asks financial advisor José de Boer from De Boer Financial Services.

Something very much in the news in the past few months has been the issue of foundations – the wooden piles, the concrete posts, the brick basements – that so many houses in the Netherlands have been built on.

So I thought it only sensible to take a look at the issue and what you, as someone planning to buy a house in the Netherlands, need to think about.

First of all, do you need to think about them? Yes, you do.

A survey by the Dutch financial services watchdog AFM earlier this year suggested that only one in 10 households know if their home’s foundations are still up to the job, and that 25% think their insurance company will cover any damage.

And in 2024, the government’s environment and infrastructure agency RLI warned that 425,000 properties need urgent repairs and up to a million could need foundation work at some point in the near future.

Ask questions

So what can you do to make sure you are protected? First of all, ask your estate agent. It is their job to check with the selling agent about any problems with the property, and that includes foundation trouble.

Estate agents are required by law to tell you is there is an issue. If they don’t, they can be held liable for what is known colloquially as “verborgen gebreken”. You’ll see the official term “onzichtbare gebreken” in the sales contract.

A simple check? Take a marble with you and put it on the floor in a corner of the room. If it rolls, that means the house is not level and you could be facing trouble. Cracks in brickwork and plasterwork are other indications that something could be going on.

Have a survey done

I say “could” because the only way to get a better idea is to have a survey carried out before you make an offer. But even that won’t tell you conclusively, because to really make sure, engineers have to dig down and carry out a physical check. But do bear in mind, sellers and selling agents want bids without any conditions attached – and that includes surveys.

So what impact does the state of the foundations have on your mortgage borrowing capacity? At the moment, nothing at all. While there is some pressure from banks to have a foundation guarantee requirement for all homes coming on the market – as there now is for energy labels – as yet nothing is changing.

In addition, you may be able to offer a lower price for a property with problems if you are prepared to carry out the work yourself. You won’t have to do the work immediately either, if you’d rather wait a while.

Most homes are fine

All that being said, foundations might be a problem in some homes, but they are a problem that can be solved. Major repairs can cost up to €120,000 for a terraced property, but if you are in an apartment with several owners, the cost will be shared with the entire home owners association.

Remember too, the foundation situation is not an issue nationwide and may differ from city to city, street to street and house to house.

In addition, the increasing amount of awareness about foundations does mean more owners are making checks and sorting out any problems they find, so you may well be able to buy a property where the work has already been done.

If you would like to more about taking out a mortgage in the Netherlands, please contact José via email or phone 31 (0)20 664 55 78.