Unrealistic promises from politicians worsen Dutch housing crisis, say experts

In an open letter to politicians in the Netherlands, experts have warned that unrealistic promises made in the lead-up to the election period could worsen the Dutch housing crisis. They advocate for more realistic long-term policies instead, such as phasing out mortgage interest deductions.

Dutch political parties propose short-sighted housing policies

While solving the housing shortage in the Netherlands has been a priority among country leaders since 2017, the problem has only gotten worse. As political parties reveal their plans before the election in October, experts are concerned that things will continue to deteriorate. 

"I'm a bit shocked by the media appearances of some of the party leaders," Housing Systems Professor Peter Boelhouwer told AD. "They're spouting off the cuff a lot of things that we believe are unrealistic and could even make matters worse." 

One such example includes VVD’s plans to introduce more measures to help first-time homebuyers secure funding when applying for a mortgage, which, according to experts, would add more “price pressure” and exacerbate the housing shortage. 

Experts propose changes to improve Dutch housing problems

Boelhouwer, together with other housing experts Friso de Zeeuw, Jan Rouwendal and Desiree Uitzetter, have come up with a realistic solution for “long-term success”. This group is calling for the future housing minister to take control of a national strategy which includes building 1,8 million homes in large-scale development areas and in smaller locations. 

Another suggestion includes investing more in infrastructure. Currently, only 500 million euros is earmarked annually for public transport and other infrastructure important for housing growth, while experts estimate that 1,5 billion euros is needed. Simplifying regulations, industrialising construction, subdividing homes and promoting landlord-tenant rentals are also important. 

One of the most unpopular measures being suggested is phasing out mortgage interest deductions. The Netherlands currently offers the highest tax relief for homeowners in Europe. Getting rid of this would stop the rise of housing prices and save as much as 6 billion euros in taxpayer money. 

For a long time, politicians have made unrealistic promises without allocating the necessary resources. This, along with too many regulations, is making the housing situation worse, the experts believe. “People are being given false hope,” said De Zeeuw. “We need to take real steps to solve this.”