People under the age of 30, single earners and first-time buyers in the housing market have had an increasingly difficult time on the housing market in recent years. That is one of the conclusions of the Land Registry, which analyzed the figures of recent years.
In large parts of the Netherlands, less than 10 percent of owner-occupied homes are available to people who earn just too much to qualify for social housing. The income limit for social rental housing is currently set at an income of 45,000 euros. In 29 municipalities there are no homes for sale at all for people with such a salary. Four years ago, this only applied to four municipalities.
At the same time, because of the low interest rates, buyers can borrow considerably more than in 2017, sometimes up to 30,000 euros more. However, house prices rose even faster, so that a household with a combined income of less than 35,000 euros has hardly any more chance of finding a home.
People who already own a home can actually use the increased house price to their advantage and buy considerably more expensive homes than first-time buyers. This advantage for transferees is also growing due to the increased house prices. In 2017, movers still bought homes that were on average 40,000 euros more expensive than the homes that first-time buyers bought. This year it concerns a difference of 71,000 euros.
The Land Registry has noticed that home buyers from the large cities and the surrounding ring road are increasingly moving to rural areas in search of affordable housing. More and more people are also buying a house together because it is not feasible alone.
Land Registry: starters and younger buyers are hurting the housing market
Source link Land Registry: starters and younger buyers are hurting the housing market