Housing Trends: What’s Changing in the Netherlands for 2024

The new year comes with significant changes in the Dutch housing sector. From easier mortgages to increases in rent prices (and their allowances), the adjustments aim to create a more inclusive and equitable housing landscape. Here’s all you need to keep in mind this year. 🏘️

National Mortgage Guarantee

The coverage under the guarantee scheme has been extended, now accommodating homes up to €435,000, with an increased limit of €461,000 for those incorporating energy-saving measures.

Borrowing Limits

Changes in borrowing limits have been introduced, allowing individuals more flexibility in obtaining mortgages. Additionally, there are increased funds available for energy-saving initiatives. For first-time homebuyers under the age of 35, the threshold for exemption from transfer tax has been raised to €510,000.

Rent Increases

In the social housing sector, measured rent increases have been introduced, aligning with this year’s average pay rises. Most tenants can expect a maximum rent increase of 5.8% from July, with a reduced rate of 5.3% if the landlord is a housing corporation. To encourage higher earners to explore the non-rent controlled sector, they will face higher increases, fostering movement within the housing market.

Tenants in the “free sector” are subject to a 5.5% rise before May, based on inflation plus 1%. Post-May, the possibility of new rules coming into effect emphasizes the commitment to adaptability and fairness in the ever-evolving rental market.

Social Housing

Starting January 1, 2024, the rent ceiling in the rent-controlled sector is set at €879.66, determined by a points system. To qualify for social housing, income limits have been established—up to €47,699 annually for single individuals and €52,671 for couples. Additionally, the maximum housing benefit has been increased by €34 per month.

Rent Allowance Increased

Beginning January 1, 2024, the rent allowance sees a substantial increase, reaching a maximum of €5,779 per year—an increase of €416. The eligibility threshold rises by €1,250, ensuring continued qualification for many, even as earnings may increase, and opening the door for others to qualify for the first time.

Point System

Addressing middle-income renters, the revamped point system broadens the support net. While low-income tenants currently benefit from a ceiling of €763 based on points for social housing (up to 142 points), the revised plan raises this to €1,100 with 187 points, expanding the scope of support.

Are you relocating and need help with your house search? Reach out to relo@expatmanagementgroup.com for a free consultation.

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