The amount of equity in people’s homes has almost tripled in the last four years, forcing first-time buyers to shell out more to compete with people already on the housing ladder, figures show.

Mortgage database Hypotheken Data Netwerk (HDN) found that the average homeowner was able to put down €185,000 from their existing home towards a new one, compared to €66,000 in 2020.

With prices rising by 10.5% year-on-year in the last quarter, new buyers now have to find around €42,000 for a deposit, an increase of 10% compared to a year ago, while existing homeowners are able to hang on to more of their savings.

“If you’re in the property market that’s clearly excellent news, but if not then the challenge of getting your foot in the door keeps getting bigger,” HDN director Jennifer op ‘t Hoog said.

“We’d all like to see young people in the Netherlands getting their own place, building up their own life and not having to live at home until they’re 33. Because that’s the average age at which people buy their first house.”

At the same time the amount buyers are borrowing for a mortgage rose by 10%, with half of all requests coming from people under the age of 35, according to advice bureau De Hypotheker.

In the second quarter of 2024 lenders arranged 120,000 new mortgages, up by 27.7% from the same period a year earlier.

The number of second mortgages taken out by people renovating, extending or putting in energy efficiency measures increased by 33%, with the average amount rising by 15% to nearly €100,000.

The number of transactions has declined in the recent years as buyers held off when interest rates started to climb from mid-2022, but as rates stabilised in the first half of this year they appear to have returned to the market.

“Build senior housing”

Since 2023 working couples have been able to include the full value of both their incomes when applying for a mortgage, boosting the total amount they can borrow.

Mark de Rijke, commercial director of De Hypotheker, said older homeowners who wanted to downsize were unable to find anything suitable, causing a shortage of family-sized homes for people moving up the ladder and inflating the market.

“It’s crucial that we build more senior houses,” he said.