The new government has just published its plans for the coming year, so what do they mean for home owners and those hoping to buy?  Find out all about the budget and the most recent house price and interest rates developments in the latest housing newsletter.

Kick-starting the market

First things first. The new government is not planning any more cuts in mortgage interest tax relief or any immediate changes in the way your property is taxed as an asset, so there are no changes for home owners on that score.

For people looking to buy property as an investment, there is some good news as well. The government has agreed to cut the property transfer tax, or overdrachtsbelasting, on investment properties from 10.4% to 8% in a bid to get more investors to enter the market.

“The reduction in property transfer tax for investors is an interesting measure, but its short-term impact will be limited since the reduction won’t take effect until 2027,” says Kenneth Leenders, chief executive of Expat Mortgages. “For international buyers considering property as an investment, and for potentially restoring supply levels in the rental market, this is positive news. However, it doesn’t create an immediate incentive.”

Mortgage interest tax relief

The decision not to impose further restrictions on mortgage interest tax relief is also a welcome one, Kenneth says. “This remains a significant benefit for many homebuyers, including internationals settling in the Netherlands.”

The government is also continuing the previous administration’s pledge to build one million new homes by the turn of the decade, and aims to speed up development by cutting back on red tape and procedures. So if you are thinking about buying a new home at some point, you may have more choice in the future.

“The government’s focus on reducing bureaucracy and speeding up new housing developments is also a positive step,” Kenneth says. “Building new homes could have the biggest impact on addressing the current housing issues, as it can increase supply for both buyers and the rental market. This may also help stabilise housing prices over time and provide more opportunities for buyers.”

House prices are up again

Dutch house prices continue to rise, and went up around 11% in August, according to the Dutch statistics agency CBS. That’s the highest increase in two years. Month on month, the increase is 1.1%. At the same time, however, more homes are being sold. The CBS has recorded almost 129,000 sales in the first eight months of the year, and that is up 11% on the same period in 2023.

So what does this tell us about the housing market?

“The fact that more homes are being sold despite rising prices offers some hope that supply is becoming less restricted,” says Kenneth. “However, I believe the root cause lies elsewhere.

“Due to changes in rental market regulations—such as the increase in rent regulation and higher taxes in Box 3—the number of investment properties being put up for sale has risen significantly. This has created a temporary positive effect on the supply of houses for sale. However, this same factor is also contributing to rising prices. As the supply in the rental market decreases drastically, more people are being pushed towards purchasing property.”

When you combine this with declining interest rates, which allow people to afford larger mortgages, it’s clear that house prices will likely continue to rise in the coming months, he says, pointing out that analysts at Rabobank also predict housing prices could increase by another 10.6% in 2025.

How much can I borrow?

Salaries continue to rise as well as house prices, which means an increase in how much you can raise for a mortgage. Want to know how much you can borrow? Expat Mortgages has an online mortgage calculator which can help you work out your maximum loan.

“The upward trend in house prices means that speed and careful preparation are essential when making an offer,” says Kenneth. “My advice to anyone looking to buy a house is to ensure they are well-informed and well-supported, so they avoid making emotional decisions.”

New offices

Expat Mortgages has moved into a new office space called Zandkasteel, near the Bijlmer railway station in Amsterdam Zuidoost. The office is easy to get to by train, metro, bike, and car, and has room for information evenings and workshops as well as face-to-face client meetings.

“Buying a house in another country can be daunting and we want to do everything we can to help,” says Kenneth. “Our new office is the place for live seminars on all kinds of issues. For example, you can come along and find out our new product to protect you if you bid on a property without a financial clause, in case your mortgage falls through. These are the little things that give you the edge in this difficult market.”

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.