House prices rose by 7.8% in the third quarter of last year, and the increase is now levelling off, national statistics agency CBS said on Monday.

The price of new homes rose by 7.4% in the third quarter, which is below the increase in the first half of the year, CBS said. The increase put the average price of an existing home at €487,000, compared with €523,000 for a newly built property.

In total, almost 63,000 homes changed hands between July and September, a rise of 15.6% on the year-earlier period. In particular, more cheaper homes are coming on the market, as landlords sell off rental properties because of new regulations.

ABN Amro economists said on Monday they expect house prices to rise by 3% this year and by 4% in 2027, as wage growth slows and interest rates level off.

The bank’s economists also said plans to phase out mortgage tax relief, as mooted by D66 and the CDA, will not have much impact on prices.

This is because both parties want to phase in the change slowly and to cut income tax as well, the report said.