18 percent decrease in number of building permits in first four months of 2022

Ambition of 100,000 homes per year seems further and further away
Despite all the efforts being made by central government, provinces and municipalities, such as the ‘Woningbouw Impuls Programma’, the ‘Woondeals’ and the national program ‘A home for everyone – een thuis voor iedereen’, there currently appears to be a declining trend in the issuance of building permits. The aim to reach 100,000 new homes per year from 2024 onwards therefore seems further away than ever. The number of 22,000 permits in the first four months of 2022 is 18% lower than in the same period last year, when the total number of permits eventually came to 75,000. If the current rate of permits (5,187 in April) is continued, the total number of permits will not exceed 65,000 in 2022. The focus on flexible housing may increase the number of completed homes slightly, as they are not covered by these permits. However, it is expected in the coming months that a further decline in the number of building permits will become apparent, mainly due to rising construction costs and the uncertainty about the feasibility of new construction projects. Marijn Snijders, managing director Capital Value: “Despite the good efforts of both the Cabinet and local and provincial governments, not enough is being done to build sufficient homes in the near future. Additional incentives are needed for the construction of more homes. Earlier this month we came up with the proposal to lower the VAT on affordable rental housing. In addition, we ask our government to be careful with the introduction of national rules for mid-market rent in new-build projects, because in most cases local regulations are already in place.”