The number of owner-occupied homes purchased by investors has fallen sharply in the past year. First time buyers bought more homes. The most likely explanation is the increase in the transfer tax that the previous government provided to investors.
The Land Registry Office, which records all property data in the Netherlands, conducted a research on the impact of small investors (maximum four homes) on the housing market. For the first time since 2013, the group buying homes for rent has declined.
The number of homes acquired by investors doubled between 2010 and 2020, to 88,000 annually. Then it dropped to 51,000 in 2021. The fact that investors were stealing owner-occupied homes in front of starters who had less to contribute is a thorn in the side of the political parties in the coalition. Especially because the rents are in the free sector through the roof He went. Under the guise of “homes to live in, not to make money”, the housing market has become more attractive to investors.
Municipalities were also given the opportunity Self Employed Commitment (Procurement Protection). 60% of municipalities have or want such a commitment to self-occupancy. Especially the big cities did a quick job at it. In Amsterdam, Rotterdam, The Hague and Utrecht, private investors have bought more than 25 percent of homes sold in the past 10 years. In the whole of the Netherlands this was more than 15 percent. In the last quarter of 2020, investors in the Big Four cities bought more than 40 percent of homes sold.
Since January 1, 2021, the transfer tax has been adjusted in various ways. Buyers under the age of 35 no longer have to pay tax to buy a house, provided the price is less than 400,000 euros. Moreover, each owner – a new occupant pays 2 percent. Investors were introduced to a higher bill last year, which is an 8% instead of a 2% tax. They save 18,000 euros on a 3-ton house.
The proportions in the housing stock change slightly due to purchases by investors. The share of small investors increased due to the number of homes they bought from their owners and occupants. Large institutional investors mainly bought newly built homes. 57 per cent of all homes in the Netherlands were owner-occupied on 1 January 2022. About 30 per cent are owned by housing associations and 13 per cent are owned by other landlords, some of which still enjoy rent protection (social rent).
It was also clear that investors are investing less money in real estate than they were two years before the capital value figures. The real estate company calculated that 7.7 billion euros were invested in homes last year, which represents a 32.5 percent decrease in transaction volumes in 2020. Proportionately, more money went into new construction. Housing market analysts also assume that investors realize that the price cap has been reached. Home prices fell in the last quarter, As the numbers show From the NVM Real Estate Association.
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