2023-07-02 15:00:00
Billions of government money are needed to keep housing construction going, says the Woonbond. In particular, many more social housing units need to be built.
Hanne Obbink 2 July 2023, 17:00
Much more government money and much more social housing. That is the core of an ‘action plan’ by the Woonbond, the representative of tenants, to get new construction going once more. This threatens to come to a standstill, while the cabinet wants more new construction, 900,000 homes up to and including 2030.
Minister Hugo de Jonge (public housing) also sees it: housing construction is facing major setbacks. Rising construction costs and high interest rates mean that developers and builders have less money to earn, so they are not eager to take on new projects. De Jonge expects them to adjust their plans, he said in May, and is also focusing on flexible homes that can be built quickly. The House of Representatives will discuss it on Wednesday.
All registers must be open
According to the Housing Association, more is needed. “All registers must be open,” says policy officer Maarten Wiedemeijer. Focus more on social rental, the union advocates first of all. The minister wants 250,000 new social rental homes, but because there will also be demolition and sale, the percentage of the entire Dutch housing stock will increase. in this category, however, is undesirable, according to the Woonbond, so aim not at 250,000, but at 350,000 social rental homes.
That is possible, explains Wiedemeijer. Indeed, developers and builders have built many expensive homes in recent years, because there is a lot to earn from it. And making a profit on cheap homes is now even more difficult due to the increased costs. But the demand for expensive new construction has declined enormously: prospective buyers are shying away from high prices, especially in uncertain times.
“In your Excel file, a project with expensive homes looks good,” says Wiedemeijer. “But if you don’t lose those homes, you will still run into a loss. following all, the waiting lists are huge.”
250 million? A pittance
The Woonbond advocates giving housing associations more scope for the construction of social housing. The landlord levy (a tax that cost them 1.7 billion euros a year) has been abolished, but now they are charged for a European tax, the so-called ATAD. This is intended for multinationals, but also costs the corporations money, in the long term 900 million euros per year. Make sure that corporations do not fall under those ATAD rules, says the Woonbond.
In addition, much more government money is needed. The government previously earmarked 1 billion euros to boost housing construction and added another 250 million in the Spring Memorandum. A pittance, says Woonbond. He wants an extra 5 billion for housing and another 5 billion for the associated infrastructure (on top of the 7.5 billion that the cabinet has already reserved for this).
With that money, projects that are no longer profitable due to the increased costs can still be carried out. Yes, that money may then disappear into the pockets of entrepreneurs who have made the wrong choices with their expensive plans in recent years, admits Wiedemeijer. “Strict conditions must therefore be attached to this: they must build more affordable homes.”
Rent and quality in relation to each other
According to investors and developers, there is a better way: De Jonge must abandon his plan to limit rents for mid-priced homes (from 800 to 1100 euros per month). That plan is disastrous for their returns, they argue, and therefore forces them to cancel construction plans.
The Housing Association sees it differently. “This rent regulation is necessary to ensure that the rent and quality are in proportion,” says Wiedemeijer. If commercial parties refrain from building medium-priced homes, the corporations can step in, he believes. Preferably with the guaranteed loans that they also use for the construction of social housing. “It doesn’t cost the government a penny.”
Read also:
Significant dip in new construction expected, minister Hugo de Jonge wants to fight setbacks
The new construction of homes threatens to fall sharply, while the need for it is growing. Minister De Jonge is taking measures himself and hopes that market parties will soon make new plans.
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