Finance

18 percent more: house prices rose again at record pace

It is the same message time and again: house prices are rising, there is a shortage on the housing market and owning a home is becoming unaffordable for more and more people.

The latest figures from Statistics Netherlands (CBS) show that there is no end to this overheating in the housing market for the time being.

78 percent more expensive than in 2013

A home is currently 78 percent more expensive than in 2013, when house prices hit their lowest point. House prices have soared to new record highs over the past six months, and August was no different.

Fewer homes changed hands in August. The number of home sales fell by 9 percent to 17,257 transactions, Statistics Netherlands and the Land Registry announced. This concerns existing houses, new construction is not included.

One billion available

In the coming years, the cabinet will allocate one billion extra to boost housing construction, but the question is what it will yield. Kindergarten teacher Chantal has little faith in it, she told RTL Nieuws yesterday:

To solve the housing shortage, the caretaker cabinet is making an additional 1 billion euros available to boost housing construction, it was announced on Budget Day.

‘Not easy to solve’

In the Speech from the Throne, King Willem-Alexander also said yesterday that the overstrained housing market is a problem that unfortunately cannot be solved quickly.

Action groups and civil society organizations believe that the government should allocate not one but at least 4 billion euros a year to provide affordable housing, among other things.

Historically low interest rates

According to experts, a conversation with houses is not the main cause of the increasingly strong rise in house prices. Mortgage interest rates are also historically low and home buyers can borrow more from the bank. Low interest rates also make a house more interesting as an investment because bonds yield little.

In addition, critics, including President Klaas Knot of De Nederlandsche Bank, argue in favor of phasing out benefits for homebuyers such as mortgage interest deduction more quickly.

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