New Dutch plan to facilitate home ownership
The VVD party has presented a new housing plan aimed at supporting young people and those with middle incomes in the Netherlands to buy a home, amid the increasing difficulties they face due to rising property prices. MP Peter de Groot from the VVD party explained the details of the plan, which includes opening tax-exempt savings accounts through which up to 75,000 euros can be saved specifically for buying a home. Currently, the tax-exempt limit for individuals is around 57,000 euros only.
De Groot said that this idea is inspired by a successful experience in Germany, where many young people have dedicated savings accounts for housing, and the money in them can only be used to buy a home. He emphasized, "There is no reason to prevent the implementation of this system here." He pointed out that current policies focus on building rental housing, while the majority prefer to buy to build a stable future, adding that the government should provide actual support for these individuals.
The VVD party has called for a significant expansion of the "National Affordable Home Ownership Fund" (Fonds Nationaal Betaalbare Koopwoningen), which was recently launched with government support of 100 million euros. This fund compensates part of the house price for first-time buyers and middle-income earners, with a maximum of 70,000 euros, benefiting only about 1,500 people currently. De Groot considered this number insufficient, calling for billions more to be injected into the fund, which could come from pension funds or the national mortgage guarantee fund, noting that the money would be recouped later upon the sale of the house. He explained that rising house prices have made it difficult for young people to obtain the necessary financing, as they now need a joint annual income of around 90,000 euros to secure a mortgage. He added that the difference between the available loan and the house price can be covered by the fund.
The party also proposed introducing a special type of mortgage loan with a repayment period extending to 40 years instead of 30, to reduce the monthly burden on new buyers, especially those with children and additional expenses. However, De Groot rejected raising the borrowing limits, emphasizing that this could lead to further price increases and increase financial risks for banks.
In another step, the party seeks to reintroduce a scaled-down version of "Jubelton," which is a tax-exempt gift that parents give to their children to buy a home. The previous exemption of 100,000 euros was abolished last year due to its impact on raising prices. The new plan proposes a ceiling for the exemption of 30,000 euros, which corresponds to the additional purchase costs of an average home. Regarding the recent proposal from the Court of Audit to abolish the mortgage interest deduction, the VVD party firmly rejected the idea, emphasizing its commitment to maintaining the current system, with De Groot confirming that the party will seek to implement these proposals if it participates in the next government.