House prices are going up, interest rates are stable and climate risks have become the new hot topic on the Dutch housing market. Here’s a round-up of the latest housing news.

The foundation factor

Anyone who follows developments on the housing market in the Netherlands cannot have failed to notice that foundations – the brick, concrete or wood pillars on which Dutch homes are built – are a very hot topic at the moment.

The big Dutch banks, the financial services regulator and the government’s infrastructure agency have all warned in recent months about problems homeowners could face if their properties have dodgy foundations. They back the introduction of a “climate label” for all property that comes on the market – similar to the situation now with energy labels.

Estimates range from 425,000 to one million homes with possible problems – so what should you do as a buyer to make sure you don’t get caught out?

“First of all, we must take the situation seriously, rather than ignore it,” says Kenneth Leenders, chief executive of Expat Mortgages. “And this is just another reason why we always recommend working with an estate agent who looks after your interests. They can tell you, for example, which areas are high risk.

“We also recommend that our clients always commission a structural report if they are interested in putting in an offer, despite the extra costs. So you are taking a decision based on actual information.” However, as yet, says Kenneth, there are no signs the foundation issue is having an impact on house prices.

Incidentally, the RLI is recommending the government set up a special fund to help homeowners finance renovation work if they do have problems with their foundations – so that is a good sign.

Energy labels

The Dutch press reported late last month that buyers are becoming more flexible about energy labels when putting in offers to buy a home. So, while a few months ago, homes with high energy labels were really in demand, the competition to buy is so tough at the moment that buyers are ditching this as a requirement.

But are banks becoming more reluctant to lend on properties with a low label?

So far, at least, Kenneth says, there are no signs that people are being offered lower mortgages if they buy a property rated G or F. And don’t forget, he says, that while you can borrow more if you buy a home with a high-energy label, you can also borrow more if you pledge to take measures to boost energy efficiency as well.

How much can you borrow?

Want to know how much you can borrow? Expat Mortgages has an online mortgage calculator which can help you work out your maximum loan.

House prices up, interest rates vary

Interest rates have been going up and down marginally for the past few months and Kenneth says he does not expect any big shifts in the coming period. By the end of the year, he says, “we’re going to be somewhere between 3.5% and 4%”. That is going to be the standard.

“I would not advise buyers to wait if they are hoping for an interest rate cut,” says Kenneth. “Is now the right time to buy? The supply issue is still a major problem and it is going to take a long time before enough new property comes on the market. There are fewer rental homes around as well. So I’d say, if you find the right place and can get the right mortgage, then go for it.”

Come and say hello

Expat Mortgages will be at the IamExpat fair in Amsterdam on April 13 – and hosting a workshop on buying a home – so sign up for your ticket and come and say hello.

If you can’t make that, the team also hosts regular webinars on the process of buying a home in Amsterdam, The Hague, or anywhere else in the country, if you are thinking about taking the plunge.

By the way, Expat Mortgages also runs a partnership programme for employers with international workforces. These companies offer their staff help in dealing with the challenges on the housing market and bring in Expat Mortgage’s experts to help on the buying side. Contact Kenneth directly to find out more.

Any questions?

If you’ve got any questions about the process of buying a home in the Netherlands, you can always check out the FAQs on the Expat Mortgages website to see if they have the answers. Feel free to get in touch – they have an open chat line – if your question is not covered.