Tuesday 11 August 2020

Major shortage of affordable housing looms, says new report

Photo: Depositphotos.comThe demand for rental homes in the Netherlands far outstrips supply and the trend is worsening, according to housing experts.

A new report by property advisory group Capital Value has found that most of the new properties being built are for sale and thousands of rental homes are also being sold off.

The group said it was concerning that this was happening at a time when there is a shortage of rented homes for families. ‘The focus of housing associations, councils and developers is far too much on owner-occupation,’ the report states.

New build

Last year, local councils issued more than 58,000 housing licences and that is set to rise to 70,000 this year. However the number of rental properties is actually going down, as older buildings are demolished and investors buy up and sell on former rental homes to private owners.

The Netherlands currently has some 7.7 million households but that will rise to 8.2 million in 2025, requiring a significant increase in the housing stock.

Currently, 318,000 single people and households cannot afford to buy or find an affordable rental home, the report says. The situation is particularly acute in Amsterdam and Utrecht.

Affordable housing

‘Councils will have to do more to encourage rental housing construction, even if this means they earn less for their land,’ Capital Value director Marijn Snijders said. ‘A large rental sector with sufficient affordable housing is of primary importance to a housing market.’

Research by housing rental platform Pararius earlier this month said new tenants are paying an average of €2,200 a month for a home in Amsterdam.

There is a waiting list of 10 years for a rent-controlled property in the Dutch capital.

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