Dutch housing minister Mona Keijzer has published new rules to speed up residential housing development in the Netherlands, including placing restrictions on the right to appeal and making it easier to build in rural areas.

The aim of the measures is to ensure that enough affordable housing is built, that procedures are shorter, and that everyone has an equal chance of getting a home, the minister said.

The legislation, Keijzer said, will “provide legal instruments for government and local authorities to work more quickly with the private sector in building both sufficient and the right kind of housing. It is also important to ensure that people with an average income have the opportunity to find an affordable home in every local authority area.”

Cutting red tape

Current planning rules state that applications for new residential locations should be supported by evidence that there is a need for housing in that particular place, limiting development outside current town and city boundaries.

This procedure requires additional research, time, and costs and will therefore be scrapped, the minister said, adding that this will make it quicker and easier to build outside existing urban areas.

In an effort to cut down on protests, protesters will only be allowed one legal appeal instead of two in projects of more than 12 units, and the ruling must be made within six months, the minister said.

30% social housing

The new rules also state that two-thirds of new builds in the Netherlands should be accessible to people on low and average incomes and that 30% should be social housing on a regional rather than a project basis. This was agreed at December’s housing summit between the government, developers and investors and marks a shift in the current project-based percentages.

The rules also make it easier for homeowners to build a “granny flat” on their property without a permit and simplify the regulations for sustainable construction.

Affordability a challenge

“The measures are a step in the right direction, but still more can be done,” said Dutch developers’ organisation Neprom in response. In addition, affordability remains a challenge, Neprom said.

“The agreement that two-thirds of new developments should be classed as ‘affordable’ is becoming increasingly difficult to realise,” Neprom said. “What does help is that planning procedures are now being made uniform and agreed at a regional level.”

Photo: Depositphotos.com

Holland Metropole member Bouwinvest plans to invest €1 billion in housing in the Netherlands over the coming years to increase the supply of affordable and sustainable homes.

“We are able to do this thanks to our shareholders, the Dutch pension funds,” says Paul van Stiphout, Fund Manager Dutch Residential Investments. “Capital can be fickle, but a stable, high-value shareholder base allows us to plan for the future.”

Shareholders seek a return on investment of 5.5% to 7% by developing sustainable homes in the mid-market sector and just above, Paul says. “We can improve affordability in the long term by increasing housing supply. We will also sell older properties to fund new construction. We’ve agreed at least 50% of our capital will go to new builds, ensuring growth in the total housing stock.”

One million new homes

However, additional capital is needed to fully address the housing shortage in the Netherlands. The government aims to build one million new homes, an effort requiring around €400 billion in investment.

“This is significantly beyond our capacity alone,” Paul says. “Dutch pension funds have already heavily invested in the market. To meet the target, new capital must come from foreign investors, including pension funds in Canada, Germany, and Switzerland.”

The Dutch housing market has attracted foreign investors due to its transparency and maturity. Public-private partnerships are common, and institutional investors play a crucial role. However, competition from other European markets facing similar shortages presents a challenge in securing foreign capital.

European problem

“Our tight housing market is a European phenomenon and we are competing with European markets with cities like London, Berlin and Madrid,” Paul points out. “If these markets have beter investment conditions than we have, then the capital is more likely to move there.”

Housing minister Mona Keijzer has committed to reducing bureaucratic hurdles and planning requirements to speed up construction. She has also allocated €2.5 billion to infrastructure improvements, flood risk management, and expanding electricity grid capacity.

In addition, the transfer tax on residential property sales, currently 10.4%, will be reduced to 8% in 2026 to encourage investment.

“We call for a stable, stimulating long-term investment strategy and a competitive tax regime,” Paul says. “We must have the equal conditions for all investors, domestic and foreign. We need capital, and international players must feel welcome. The government must enhance the investment climate to make this possible.”

In total 82,000 homes were added to the Dutch housing stock last year, including new build, repurposing old buildings and subdividing existing units, according to new Dutch housing ministry figures.

The total is below the government target of 100,000 new homes a year and the dip is likely to continue in 2025, housing minister Mona Keijzer said. However, from 2026, when government measures begin to take effect, production will grow and from 2027, the target will be met, the minister said.

According to housing ministry statistics, plans for 1,021,000 new homes have now been drawn up.

Slashing red tape

“The measures we are now implementing will bear fruit in a couple of years,” the minister said. “But every step forward is an advance. Our main focus is to remove obstacles to new construction projections, such as local authority red tape, and make better use of existing buildings.”

In December the minister hosted a housing summit with developers, investors, construction firms, local and regional governments, and housing corporations who all signed an agreement aimed at speeding up the development of new homes.

Developers’ organisation Neprom was among the signatories of the deal. “The time for sitting back and waiting for problems to resolve themselves is over,” said Neprom chairman Ronald Huikeshoven. “We have all made difficult decisions to meet each other halfway and look at how things can be done.”

Affordable housing pledge

The signatories to the deal have committed to ensuring that two-thirds of all new developments at the regional level will be “affordable,” and that, in time, 30% of the new properties will be social housing, with rent caps and income requirements for tenants.

This marks a shift from the previous government’s emphasis on ensuring affordable housing in every project. The government has also pledged additional funding to cover the immediate costs of expanding the social housing supply, provided that local councils contribute 50% of the funding. This may well prove a stumbling block, given central government is planning to cut local authority funding.

At the same time, minister Keijzer acknowledged that uncertainties remain around infrastructure issues that need to be addressed, including electricity grid congestion, nitrogen emissions, green spaces in and around cities, and flood risks. She has set aside €2.5 billion to help ease these problems.

Standardisation and less red tape

The signatories have also agreed to standardise rules and regulations, meaning that local councils can no longer impose their own rules on top of those set by the national government. The government itself will no longer introduce regulations that go beyond those agreed at the EU level – a decision which led the minister to earlier tear up the requirement that all new property includes bat and bird boxes.

However, developers are still concerned about the challenges of delivering enough affordable housing and say the financial coverage remains uncertain. “We hope that the agreements made… will provide enough leverage for our members to invest in housing construction in a way that makes economic sense,” Huikeshoven, who also chairs developer AM, said.

Holland Metropole members had earlier expressed concerns about the investment climate and the challenge they face to attract capital to invest in affordable housing.

The Holland Metropole region is continuing to excel in terms of connectivity and infrastructure, according to the latest research by The Business of Cities.

Air passengers are a first visible sign of how special the region is and the three main Holland Metropole airports welcoming nearly 80 million passengers in 2018. This put the region ahead of Hong Kong and Singapore, and just behind the San Francisco region, the report said.

Passenger numbers have grown faster than in other regions with a year-on-year growth of just above 4% and, the researchers say, among regions of fewer than 10 million people, Holland Metropole may become the world’s leading aviation hub in the next decade.

The region is also an important cargo hub but, the researchers say, its super- connectedness stands out most of all in its internal connectivity. ‘Its polycentric character means the region offers the unique ability to connect multiple large cities directly by rail. Other regions, by contrast, have inherited a pattern of growth around a single centre which has reduced access to jobs and other key urban assets,’ the report said.

The region boasts an average travel time between the five centres of just over 50 minutes (second only to Greater Boston) and an average speed of around 85km/h (third only to Munich Metro and the London region).

Holland Metropole’s special connectivity is also reflected in the fact that it is the only region among its peers to provide direct rail travel between all its major centres, making living in Rotterdam, working in Amsterdam and going out to the theatre in Utrecht a realistic option.

At the same time, Holland Metropole’s digital infrastructure platform remains very strong by global standards. Having a strong digital infrastructure boosts digital workforce skills, internet usage and access to smart services, so it is unsurprising, the report notes, that Amsterdam, Rotterdam, Eindhoven and The Hague all recently ranked in the top 20 cities in Europe for the number of people working in jobs in the ‘app economy’.

With 33 full and associate partners, and five start-ups in tow, the Holland Metropole group is out in force at this year’s Expo Real trade fair in Munich.

The Holland Metrople partners include investors, developers, architects and planners and the stand will feature a wide range of projects across all real estate sectors.

‘We have so much on offer that it might prove a squash to show off all the scale models of the projects properly,’ says Annemieke Verwoert of the project team.

The Holland Metropole stand offers plenty of space for meetings and networking, including a bar and catering unit, plus a daily schedule of seminars and workshops.

Visit the stand in hall A2, stand 230

‘Holland Metropole is becoming the multi-city metropolis to watch’

Greg Clark and Tim Moonen, Business of Cities

The past year has seen significant change in the number of city benchmarks and there are now well over 500 such studies produced worldwide.

And, according to a new report, Holland Metropole group is one of
the most frequently ranked
city regions worldwide, with more than 400 appearances
(in indexes and sub-indexes) across all five cities.

This, The Business of Cities report states, is partly due to the way each city borrows scale from the others, and partly due to its unique system of economic specialisation.

It is also particularly striking that across all benchmarks, Amsterdam has maintained its position as the third highest performing city region worldwide, overtaking Paris and now behind only London and New York.

Wider region

Over 40% of all benchmarks take into account the wider metropolitan and regional level of performance, reflecting the success of Amsterdam but also the appeal of the wider region.

Amsterdam may take first place in global studies such as the Healthiest Cities Index, Best Cities for Tech Enthusiasts and Qatar FCA Global Green Finance Index (for the depth of its green finance).

But what has really been important for Holland Metropole’s rise is that the region’s other constituent cities are also performing very well, The Business of Cities report states

App economy

For example, Utrecht, Rotterdam and Eindhoven all rank in the top 20 in Europe for the number of app economy jobs (ppi) and Eindhoven, Rotterdam and The Hague all rank in the top 25 global innovation hubs in EMEA. (Hickey & Associates).

Rotterdam, The Hague and Eindhoven also rank in the top 45 globally for talent competitiveness (INSEAD).

‘Success is enhancing the identity and distinctiveness of all five cities, within a single compelling package,’ say the report’s authors Greg Clark CBE and Tim Moonen. ‘Holland Metropole is becoming the multi-city metropolis to watch.’

Download the report ‘Fulfilling Potential’