The scheme that makes it possible for parents to donate a ton of tax free to their child for buying a house is so popular that it has pushed up house prices. That writes it AD.
According to the newspaper, estimates from the Treasury show that the number of donations has doubled since the scheme was expanded in 2017. In a response, Rabobank reacts critically to the scheme.
“If you give someone more money to bid, they will often use it,” said Rabobank economist Nic Vrieselaar in the NOS Radio 1 News. “The more money people have to bid on a house, the higher the prices will be. That is bad for people who have less wealthy parents.”
The economist therefore believes that the scheme should be terminated. “If the donations stop, we think houses will become less expensive than we saw in recent years.” Vrieselaar emphasizes that this is not the only thing that needs to be done to make house prices rise less quickly. For example, more should be added. “The demand has to go down a bit and the supply has to go up.”
We are paying more and more
Vrieselaar refers to a study by De Nederlandsche Bank (DNB) last week for what it means when starters become more active in the housing market. The regulator concludes that the large increase in house prices in recent decades is mainly due to the fact that buyers can generally pay more for a house.
Buyers were able to borrow more and more because they earned more and more, while at the same time mortgage interest rates fell. In 25 years, prices have tripled in the Netherlands. The shortage on the housing market – there is a shortage of 331,000 houses – plays a lesser role, according to DNB.
According to the regulator, the analysis means that start-ups are ultimately not helped very much with a larger budget, because it pushes prices up further. They can still buy the same houses as before, but now have to pay a higher price for them.
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