A consultancy firm, Capital Value, renowned in the Dutch residential investment sector, asserts that the construction of 100,000 homes could commence this year with
swift government intervention. Should the government fail to act promptly, Capital Value warns that the housing deficit could soar to 450,000 homes by 2027, as reported by the Telegraaf.
Marijn Snijders, Director at Capital Value, informed the newspaper that the groundwork for constructing 100,000 homes has largely been laid. "Many projects have obtained permits in the past, yet construction has not begun. In fact, many of these projects already have contractors lined up," Snijders explained. He outlined potential avenues for politicians to ensure the commencement of construction on these projects.
One proposed measure is the reversal of the recent increase in transfer tax, currently standing at 10.4 percent. Snijders suggests reverting to the previous rate of 6 percent, which had been in place for decades until 2020. Additionally, he recommends bolstering investments in the Start Construction Incentive (Sbi), a fund through which municipalities can support construction projects facing financial hurdles. "By increasing the Sbi by €150 million, we could see an additional 14,000 homes built," Snijders proposed.
Snijders emphasizes the urgency of government action, noting that builders are ready and permits are in place. He urged stakeholders to propose solutions promptly, with the aim of incorporating them into the government's spring memorandum, the annual budget update.
Thijs Konijnendijk, Head of Research at Capital Value, disclosed that nearly half of the "buildable" homes, approximately 100,000, fall into the affordable housing category, including social housing and medium-priced options. However, Konijnendijk noted that some of these plans face delays due to insufficient pre-sales or discrepancies when sold to investors or housing associations.
Konijnendijk attributed a nearly one-third drop in investments in new rental homes in 2023 compared to the previous year to outgoing Housing Minister Hugo de Jonge's proposed regulations on mid-market rents. The uncertainty surrounding profitability in the rental housing sector is deterring investors, according to Konijnendijk.