Monday 06 July 2020

Permits for just 77 new homes granted in Amsterdam in 2019 Q4


Amsterdam city council handed out permits for just 77 new homes in the final quarter of last year, down 95% on the previous year, according to an analysis by ABN Amro economists.

‘These permits were largely given to housing corporations. There was not one single permit for a private company,’ economist Madeline Buijs said. ‘The new rules about the types of housing which can be built, and the high costs, are likely to be behind the downturn.’

Fewer permits were also handed out in The Hague compared with 2018 but more were granted in Eindhoven, Utrecht and Rotterdam.

In total, said Buijs, the number of permits for new housing fell by almost one fifth last year, to a total of 57,380. The government has an official target of building 75,000 new homes a year.

Last month, officials in Amsterdam have agreed to relax tough rules for new housing projects in return for a commitment from developers that they will build 10,000 new mid-market homes in the capital in the next five years.

Alderman Laurens Ivens has agreed that homes with a rent of €740 to €1,030 can go up slightly faster than he had wanted and to reduce the price of building land if necessary.

In addition, the strict rule that 40% of new homes in a project be social housing, 40% mid-market and just 20% for sale or expensive rentals can be relaxed for smaller projects, the alderman has agreed.

The new homes will target middle income households with an income of roughly €40,000 to €60,000 a year and may be prioritised for certain professions such as teachers and nurses.

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