The maximum amount people can borrow to buy a house based on their income is set to go down further next year, the Financieele Dagblad reports.

The family spending institute Nibud, which determines the maximum amounts, says there needs to be a reduction to offset the downturn in spending power and higher household bills. Banks are required by law to adopt the new levels.

The changes means a buyer earning €100,000 a year will be able to borrow a maximum €554,000 to buy a house, down €25,000 on this year, if the interest rate is around 4.5%. In 2009 they would have been able to take out a mortgage of €653,000.