Finance

The Hague sets up ‘purchase protection’ for the entire city

A special permit must be requested when renting. In this way, the municipality wants to tackle slum landlords and make it easier for first-time buyers to find a home.

Alderman Martijn Balster (Wonen): “Households with a low or middle income have a greater chance of finding a home, because this way they will no longer compete with investors. Homes are for living in and not an object for profit.”

According to a municipal spokesperson, the ban only applies to the future purchase of a home. “We can’t do anything about investors who are already renting out a home.”

Rotterdam

Rotterdam will also have a ‘purchase protection’ from 1 January 2022, although this does not apply to the entire city but to sixteen districts. And Amsterdam and Utrecht also want to ban investors from the housing market in this way. In Amsterdam, this would concern homes up to 512,000 euros.

outbid

In the past year, one third of all homes sold in the major cities were owned by investors. In The Hague this was even almost 40 percent in some neighborhoods. Investors often over-bid. This makes it impossible for people with a normal income to buy a house to live there themselves.

With the introduction of purchase protection, the municipality will remove approximately 800 affordable owner-occupied homes from the market for investors.

Exceptions

There are a number of exceptions to the ban. A permit or exemption is granted when renting out to immediate family members (parents, children, brothers and sisters), or when the owner of the home travels for a longer period of time.

The Hague also includes an exemption for housing associations that buy a home to rent out as social housing.

The city council still has to approve the proposal.

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