The government should provide equal opportunities in issuing land. which has Supreme Council, the highest Dutch court. He. She Financial Gazette He writes that the ruling could have serious consequences for current and future housing construction.

According to the newspaper, this ruling threatens the Dutch ambition to build one million homes within ten years. As a result of this ruling, municipalities are no longer allowed to sell land directly to developers, because, according to the judge, other parties must be given equal opportunities to bid.

“This can have serious consequences for housing construction, but it really depends on how the participants respond,” says Associate Professor of Administrative Law Ann-Marie Drahman of Leiden University. “Lawyers, real estate firms, and municipalities are now looking into what this new master rule will mean in practice.”

corruption prevention

According to the Supreme Court, the government must also adhere to principles of good governance, including the principle of equal opportunity, when concluding contracts. You cannot just enter into a contract with one party without the other parties showing interest. The principle of equality must prevent corruption within the government.

The ruling applies only to projects in which municipalities hold the land in their hands. This does not apply to sales of land by individuals, project developers or farmers.

Permits are scarce

In the ruling, the Supreme Court refers to an earlier administrative decision of the State Council from 2016. This states that the government must provide equal opportunities when granting licenses to games of chance. Often only one of these permits is available within the municipality, which means equal opportunities must be provided. Now the rule also applies to the conclusion of contracts.

The Supreme Court makes an exception to the general rule of equality. If only one party can qualify for the tender, an exception can be made. The government will have to justify it.