Housing Market Monitor: A turning tide in the housing market

by: Philip Bokeloh , Madeline Buijs

Housing market monitor a turning tide in the housing market.pdf ()
  • International housing market data show that housing markets are coming to life again and that valuations have structurally improved.
  • Calm is also slowly returning to the Dutch housing market. The strongest signal is the upward turn in the sentiment indicator of the Homeowners’ Association (VEH). Another positive factor is that banks do not foresee any further tightening of acceptance criteria.
  • The funding gap problem will gradually recede if the National Mortgage Institute (NHI) becomes a reality, if savings locked up in insurance instruments may be used for mortgage repayments, and if other players take ING’s lead and definitively remove mortgages from their balance sheets.
  • Banks will obtain better access to capital market funding if regulators, in line with the European Central Bank, treat securitisations more favourably.
  • Renting is gaining in popularity despite the lack of dynamics in the rental market, where government interventions continue to play a prominent role.
  • The current points system for rental housing is difficult to reconcile with a neutral housing market policy. It therefore seems likely that in due course, rents will be linked to the property tax value. In addition, both the role and supervision of housing associations should be more clearly defined.