New cabinet plans for the housing market

After months of intensive negotiations, PVV, NSC, VVD, and BBB presented their coalition agreement on Wednesday, May 15. The housing market holds a prominent place in this agreement. What are the incoming cabinet's plans for the housing market? We've summarized the key points for you.

Stimulating Housing Construction

The coalition agreement emphasizes addressing the "housing crisis." Factors such as aging populations, interest rate developments, labor market shortages, rising construction and land prices, and lengthy building procedures put pressure on housing construction. To stimulate the construction of new homes, the parties advocate for a coordinating minister to determine where and how many homes should be built.

No additional sustainability regulations for construction will be imposed, and other obstacles will be removed through relaxed laws and regulations. The goal is to realize 100,000 new homes annually. This target should be achieved by adding "a few streets" in every city and village.

Retention of mortgage interest deduction

There is good news for homeowners: the mortgage interest deduction will be retained. This means homeowners can continue to benefit from this tax advantage in the coming years. Unlike recent years, where the mortgage interest deduction was gradually reduced, it will now remain at the level of the first tax bracket. The new cabinet appears to continue this policy.

Plans for renters

Renters are also considered. Housing corporations are tasked with building mid-segment rental homes in addition to social housing. At least 30 percent of all new construction projects must consist of social rental homes. Additionally, two-thirds of newly built homes should be affordable for middle-income households.

From 2026, social rental prices will follow the consumer price index. With an appropriate rent allowance, the cabinet aims to ensure the livelihood of social renters.

Cap on property tax (OZB)

The cabinet plans to cap the property tax (OZB) in consultation with municipalities. Currently, municipalities have the freedom to set the rate of this tax themselves, but this could change.

Phasing out the net metering scheme

Despite a recent Senate vote to retain the net metering scheme, the new cabinet plans to abolish it from 2027. The net metering scheme allows solar panel owners to offset unused generated electricity against their consumption. The abolition could be favorable for solar panel owners, as some energy suppliers have indicated they will stop charging fees for returned power once the net metering scheme is gone.

With these measures, the new cabinet hopes to stabilize the housing market and make affordable housing accessible for both renters and buyers.