Budget Day 2023: Dutch government increases subsidy for construction new homes
19 september 2023
On Budget Day (Prinsjesdag), it was announced that the Dutch government will increase the subsidy for the construction of new homes (Startbouwimpuls) from 250 to 300 million euros. The Startbouwimpuls (also knows as Sbi) is intended for projects which are scheduled to start construction by 2024/2025 at the latest, but do no longer have a feasible business case due to changing economic conditions. As a result, these projects are at risk of being delayed or put on hold.
The increased subsidy is a step in the right direction, but the subsidy is still insufficient for many concrete plans that can be realised in 2024 and 2025. Since the announcement of the subsidy, a total of more than 3 billion euros of subsidy has been applied for (2,195 projects with 259,982 homes), well over the initial subsidy amount.
Dutch housing shortage increases further
Forecasts from ABF, the research agency commissioned by the government to assess the housing shortage each year, show that the housing shortage in the Netherlands has grown to 390,000 homes in 2023. This corresponds with the analyses conducted by Capital Value at the beginning of this year, and amounts to 4.8% of the housing stock. The government target of reducing the housing shortage to 2% has thus moved even farther out of reach. The shortage has increased sharply relative to 2022, a development caused in large part by the unexpected surge in population growth (148,000 instead of the estimated 90,000). Taking into account demographic expectations and future building output, the housing shortage will only have been marginally reduced by 2030, in which year it will amount to 4.1% of the housing stock.
For more information on the Dutch residential market, please contact Clemens van Vuurde or Joost Jellesma.