Dutch government to intervene with housing crisis

The Dutch government is now investigating ‘unorthodox measures’ with its 2020 spending plan toward relieving the nation-wide housing crisis.

According to the Volkskrant, the government will establish a construction fund with ‘a maximum of one billion’ in subsidies for municipalities beginning new construction projects. Additionally, housing corporations may receive a billion euros in tax discounts if they begin new construction and starters on the housing market may be exempt from transfer tax. These measures are designed to encourage corporations to build middle income homes again.

Interior Minister Kajsa Ollongren reports the Netherlands is currently experiencing a shortage of nearly 300,000 homes. Ollongren supports a long term goal of building around 75,000 new homes each year until 2025, yet last year the country failed to meet this quota and the Volkskrant is not optimistic about the Netherlands meeting this goal in 2019. These failures contribute to an increasing shortage in housing punctuated by rising house prices and a recent Council of State ruling regarding the limitation of nitrogen emissions which poses a major threat to some housing developments.

By 2030, the Netherlands is expected to be home for 18 million people, an increase of 745,000. While the government has relatively few instruments to stimulate new housing developments because the municipalities and provinces primarily hold the authority to designate construction sites, officials hope creative new regulations will encourage housing initiatives especially for middle income consumers.

Featured Image: via Piqsels


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