A large proportion of Dutch homeowners would not struggle financially if the mortgage interest tax relief were reduced or abolished, according to research by ABN Amro published on Wednesday.

Many political parties want to phase out the tax break over a number of years, but the far right and VVD say such a move would hit home owners hard.

The bank’s analysis of spending patterns and survey data shows that most households do not depend on the tax deduction to make ends meet each month. Instead, homeowners generally receive the benefit only once a year, when it is settled through their income tax return.

Just 30% of homeowners choose to have the deduction paid out monthly in advance, the study found but among first-time buyers under the age of 35, that figure drops to 16%.

“If you really needed the money to get by, you probably wouldn’t wait a whole year to receive it,” said bank housing market economist Mike Langen. “When the tax break is only applied at tax return time, it doesn’t help you month to month.”

The analysis focused on households with regular mortgage payments and salaries, excluding the self-employed and pensioners. Langen also said not all homeowners may be aware that they can apply to have the tax break applied monthly.

ABN Amro also said that phasing out the deduction would have only a limited impact on house prices. While the measure might slow price growth, it is unlikely to cause prices to fall, the researchers said.