The number of people in the Netherlands behind on their mortgage payments has dropped from 34,800 to 30,300, the credit registration agency BKR said on Thursday.

The figure has been declining steadily since 2017. People aged 41 to 60 are the most likely to be in arrears, the agency said. Around 25% of those in arrears manage to get their payments back on track within two years, but 33% take more than a decade to recover.

“In a European context, the Netherlands is performing relatively well and sits in the middle range when it comes to housing cost arrears – both mortgage and rent,” said BKR chairman Peter van den Bosch.

“The proportion of people with mortgage arrears is relatively low and continues to decline. This underlines the importance of early detection, effective support and a stable housing market. At the same time, targeted attention remains necessary for vulnerable groups, persistent residual debts, and regions with elevated risk.”

Economists have long criticised the Dutch mortgage system, which allows homeowners to borrow up to 100% of a property’s value and base loan capacity on both incomes in the case of couples. They argue this encourages households to take on excessive debt.

Calls are also mounting for the tax break on mortgage interest to be phased out because of its impact on the housing market.