House prices rose nearly 12% last year, smaller towns in greater demand

Nine months into the coronavirus pandemic, house prices continue to rise and were up nearly 12% year on year at the end of December.

The increase was most modest in Amsterdam, where average prices rose 3.4% over the year, and was strongest – 22% – in the town of Hardenberg, near the German border, according to new figures from real estate agents association NVM.

In Rotterdam, Utrecht and The Hague, house prices rose by 12% to 15%.

Real estate agents have already noted a trend towards moving to more rural areas, where properties are bigger. ‘This could indicate the growing importance of having a large house for home working,’ the NVM said.

The shortage of houses for sale is also a reason behind the growth. By mid November, there were just 25,500 homes on the market, down almost one third on 2019.

‘We really need a substantial increase in the number of homes, so they remain affordable and so that people can find what they need,’ said NVM director Onno Hoes.

The average price paid for a home last year was €365,000.

Most political parties have included a pledge to expand the country’s housing stock in their manifestos for the March general election.