Home buyers drive surge in mortgage applications in big cities

Home buyers in the Netherlands’ four largest cities were more active in the second quarter, with mortgage applications there rising 24% compared to last year, data platform HDN reported on Monday.

Nationally, nearly 140,000 mortgages were applied for, up 16% on the same period last year. Over 85,600 of these were for buying a home, the rest to fund renovations or other projects.

HDN suggested the increase in the big cities may be linked to landlords selling their properties, as tighter rental rules have made letting less profitable. In particular, smaller apartments, which now fall under rent controls are being sold off.

The average purchase price rose 5% to €508,700, reaching over €600,000 in Utrecht province, HDN said.

Applications to raise an existing mortgage, often for renovations, also grew by 20% to an average of €53,849.

The number of people moving up the housing ladder grew by 21%, which is good news for the entire chain, said Jennifer op ’t Hoog, HDN director. “Everyone who moves up frees a property for first-time buyers. The number of young first-time buyer grew by 17% compared to the second quarter last year, and the first-time buyer in the higher segment by 21%.”