In the Netherlands‘ largest cities, homeownership has recently become somehow more accessible for middle-income households as many municipalities discourage investors from buying affordable real estate. However, more than a year after the policy started to be enforced, housing prices didn’t necessarily drop while rents seem to increase with shorter supply.
The first results about the consequences of the restrictions applied in the Netherlands on real estate investors were published on June 15 in a study carried out by the University of Amsterdam and the Erasmus University Rotterdam, with the help of data from the Dutch Land Registry up until March 31, 2023.
The “Opkoopbescherming” (purchase protection) law allows to strongly discourage investors from buying real estate: Any property with a value below a cap set by municipalities cannot be leased for four years after its purchase.
The Netherlands passed the law as concerns grew about investors driving up the real estate market by pricing out home-buyers, and decreasing neighborhood livability because tenants are more likely to stay for shorter periods and be less mindful of their neighbors, for example.
Most large Dutch cities applied a four-year rental ban
House price increase in the Netherlands has been regularly among the five highest of the European Union in recent quarters, according to Statistics Netherlands. Prices of Dutch real estate, new and existing properties combined, grew by 13.4 percent in 2022, adding to a 15 percent growth in 2021.
Announced in the summer of 2021, the details about how the policy would be implemented locally only became effective on January 1, 2022.
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Source: www.newsendip.com
ENB
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