Prinsjesdag 2024: Government’s plans insufficient to reduce the shortage of rental homes

What are the key points?

• The plans regarding the housing construction targets remain unchanged: 100,000 homes through large-scale construction and smaller local developments. The specific implementation will be carried out via the 16 NOVEX areas and the 35 Housing Deals.
• Additionally, the target remains for 290,000 senior-friendly homes. Financial support for construction will continue through schemes like the Stimulus Scheme for Senior-Appropriate Housing (SZGW). The SZGW assists housing associations and care providers in creating clustered, senior-appropriate social housing with care profiles VV4 to VV10.
• To support the construction of these homes, a total of €5 billion has been allocated until 2029, which amounts to €1 billion per year. The government has yet to specify how this will be spent. The focus seems to be on supporting unprofitable projects and transformation projects, particularly those of housing associations.
• The housing construction impulse will remain but will be reduced to €100 million in 2025 and 2026, then down to €90 million annually. Part of this budget will be used to cover the costs of reducing the property transfer tax.
• Additionally, the government is investing €2.5 billion in infrastructure for housing development sites. This is similar to the Housing Construction Impulse from the previous government.
• The general rate of property transfer tax for homes will rise to 8%. Differentiating between homes and non-homes under the general rate will require system changes, so this adjustment will not take effect until 1 January 2026.
• Finally, the government promises to scale up housing construction by improving processes and procedures and promoting innovative and industrial construction. Through regional and national acceleration tables and providing more capacity to local authorities, the government aims to push projects forward quickly.

What important decisions are still to come?

• At the end of 2024, a National Housing Summit will be held, where agreements will be made with local authorities, investors, market parties, and housing associations.
• Starting in early 2025, the current agreements in the Housing Deals will be updated. The key is to determine how many homes will be built, where, and for whom. The central government and provinces will have the authority to enforce these targets through the new Housing Act proposal.
• In addition to existing housing development sites and ongoing Housing Deals, new areas will be designated for large-scale housing construction, preferably near existing infrastructure.

What does Capital Value recommend?

• A potential further reduction in property transfer tax to 6%. The introduction on 1 January 2026 does not solve the risk of a significant decline in rental housing availability. We advise implementing this reduction as soon as possible.
• General stimulus measures from the €5 billion budget that apply to the entire market. Market-wide stimulus measures would give developers and investors the ability to incorporate this support into their business plans, allowing them to rely on it when financing their projects. This would create a more stable and predictable market, potentially accelerating construction. Stimulating measures are urgently needed to encourage the construction of affordable rental housing. Increasingly, (affordable) rental units in development plans are being converted into homes for sale.
• More attention and urgency for the construction of mid-range rental housing. Earlier this year, Hugo de Jonge advocated for expanding the so-called Service of General Economic Interest (DAEB), which would create more room for building affordable rental homes for middle-income groups. It is crucial that this discussion is followed by concrete actions.
• More focus on the construction of senior-friendly homes. The (double) ageing of the population continues, and the construction challenge is immense. The aforementioned Stimulus Scheme for Senior-Appropriate Housing (SZGW) could, for example, be opened up to all market parties to boost construction.

Marijn Snijders, Managing Director of Capital Value: “Based on the current plans and the market situation, we are seriously concerned about the proposed measures. There is a significant risk that the shortage of affordable rental homes will worsen. This is a missed opportunity, especially now that housing associations and pension funds are looking to invest more. Measures such as lowering the property transfer tax and supporting the construction of mid-range rental housing cannot be delayed. We urge all parties to promptly explore which stimulus measures can boost the construction of affordable rental homes.”

More information
For more information on the 2025 Budget Memorandum, visit the Ministry’s website. Of course, we are also available to answer any questions you may have regarding housing policy. Do you have questions about the 2025 Budget Memorandum or the recently introduced Affordable Rent Act? Please contact Stefan Janssen or Thijs Konijnendijk.