24 November 2021, by Victoria Séveno
Over the past year, the Netherlands has seen house prices skyrocket to record levels as the Dutch housing market has become increasingly competitive and inaccessible. While house prices continue to rise, the latest figures from Statistics Netherlands (CBS) show that the increase appears to be dropping off – albeit gradually.
Dutch house prices reached record high in October
In October 2021, house prices in the Netherlands were 18,3 percent higher than a year earlier. While this is still a significant rise, it marks the first time this year that the monthly price increase was lower than that recorded in the previous month; in September 2021, an increase of 18,5 percent was recorded. While this may provide a little hope that house prices will peak in the not-too-distant future, the increase in October means that house prices were at their highest ever recorded.
The rising prices continue to have knock-on effects for the Dutch housing market, as prospective buyers struggle to obtain the mortgages they need in order to keep up. This means that, while many may be looking to buy a house, the number of sales that are taking place continues to fall.
Last month, the number of transactions reported by the Land Registry was just over 16.000 – 27 percent lower than in October 2020. This marks the most significant fall in sales since June 2013.
Growing shortage of affordable housing in the Netherlands
Buying a house in the Netherlands is becoming increasingly more difficult as prices continue to rise and supply is unable to keep up with demand, and the Dutch government is facing growing pressure to tackle the national housing crisis.
Over the weekend, hundreds of people gathered in Utrecht to protest the government’s housing policy and, amongst other things, call for the development of more affordable housing, wielding signs such as “Housing is a human right” and “People before the market.”
The experts appear to agree, with economists from ABN Amro, the prominent Dutch bank, noting that the housing market has reached “a boiling point.” Since the housing dip over the summer of 2013, house prices in the Netherlands have risen by 82 percent.