Is now the time to buy in the Netherlands? Falling prices, NHG updates & foundation rules
While it may be getting dark earlier, that is no reason to feel gloomy about the Dutch housing market. Matthijs van der Heijden, consultant at Expat Mortgages, believes that for property buyers who are switched on, now could be the perfect time to snap up a new home in the Netherlands.
With a large amount of property on the Dutch housing market and interest rates stabilising, now could finally be a good time to strike a deal on buying a home. Personally, I don’t think many sellers will say no to an offer at the listing price as quickly as they would have six months ago.
Several signs suggest the market is cooling, while new rules coming into effect in 2027 will have an unknown effect on property.
Recent figures from Statistics Netherlands show that house prices have been falling compared to previous months. Quarterly figures from the NVM estate agent association, seen as a bellwether for the latest trends, revealed median sale prices dropped by almost 1 percent, from €507.606 in the second quarter to €503.430 in the third.
Dutch foundation risk: What expats need to know before buying
The change in the property market could be due to higher mortgage interest rates, which were also linked to property price falls in 2023.
But since April, every valuation report needed for a mortgage must also include information about the state of a property’s foundations. This might not be something you’ve ever thought about before, but in this river delta – with a lot of land below sea level and housing built on former marshland – around 425.000 properties will probably need foundation repairs in the short term.
From next year, all mortgages with the Dutch National Mortgage Guarantee will have new rules too: if a property has a model-based foundation risk rating of D or E, then an extra investigation must be carried out. If there is indeed a problem, the valuation will need to take account of the cost of repairs.
You will need to show you have this money in savings, or it will be deducted from the mortgage. If a house is sinking, for example, they could say the cost of fixing it is €20.000. Previously, you were eligible for a €400.000 mortgage but next year that same property might only be eligible for a €380.000 mortgage.
While the aim is to protect buyers, estate agents and homeowner groups have criticised the current system because property advertisements still don't require information about foundation risk. The downside is that you don’t know about it until you have seen the property. Timelines can still be short, so if a property has foundation risk, you need enough time to investigate or walk away.
The fact that there are now more properties on the market, and one in five, according to the NVM, has practically no viewings, means that buyers can feel less pressure with a fixer-upper and sellers may need to adjust their expectations.
Higher NGH limits and green mortgage borrowing room
On the other hand, the NHG-backed mortgage will also rise next year, from €470.000 to €500.000. For a fee of 0,4 percent of the borrowed sum, this means that the buyer can be covered for residual mortgage debt if certain situations, such as a divorce, force them to sell at a loss.
There will also be an extra 6 percent available for sustainability measures in your home, and if the property has a poor energy label of E, F or G, an extra loan of up to €20.000 will automatically be added to the mortgage amount. This encourages you to build in better insulation, unless you actively opt out.
You will be able to take a loan of up to €530.000 including sustainability measures, which can help if you want to renovate a house and still have that NHG protection. In spring, a wave of properties always comes on the market.
Why the winter market gives buyers more negotiation leverage
While professional investors may wait until 2027 to buy because, if the Dutch minority government manages to pass its budget, transfer tax will go down from 8 percent to 7 percent, there could be a winter flurry of sales.
It’s not super busy at the moment, but there’s a good chance we are going to see the normal end-of-year rush. Right now, though, there’s more wiggle room: if you find a property with foundation issues, you can take a few extra weeks to have it checked out and make sure the bank is okay with it. You'll also have more time to negotiate and do second viewings.
The most important thing is to take expert advice and keep your wits about you. This is a country where some properties face climate risks from hotter, drier summers that can make clay soils move or dry out the piles under a house, leaving them prone to rotting.
You may need to sell in future, so don’t just ignore any structural problems. We’re not all technical inspectors, and most people are not looking for the foundation issues. Do not use your superficial mind that says the house might be crooked, but the kitchen is cute! Keep using your logical mind.
Navigating Dutch mortgage rules, NHG regulations and foundation ratings can be complex. Book a free consultation with Expat Mortgages to assess your budget, calculate your borrowing capacity, and secure financial pre-approval before making an offer.