A wave of property sales is shrinking the private rental market in the Netherlands. Investors are selling their rental homes at more than double the rate of last year, deepening the country’s housing crisis, according to a new report by the Dutch Land Registry (Kadaster).
A massive sell-off
In the last quarter, private investors sold 3,910 more rental homes than they purchased. This figure represents a 117 percent increase compared to the same period a year ago. The data shows that the total number of homes owned by investors has fallen by approximately 5,000 over the past year. As a result, the share of investor-owned properties in the Dutch housing stock has decreased from 9.3 to 9.2 percent.
New rules and taxes are the cause
Researchers point to new government policies as the main reason for the sell-off. Stricter rental regulations, including a ban on temporary contracts and new limits on rent prices, have made it less profitable for landlords. Combined with significant tax increases, many investors are choosing to sell their properties as soon as they become vacant.
An investor organization, Vastgoed Belang, stated that these changes are pushing the Netherlands “further into a housing crisis.”
An opening for first-time buyers
While the trend is bad news for renters, it has created an opportunity for people trying to buy a home. According to the report, first-time buyers purchased roughly two-thirds of the former rental properties sold last quarter. The average price paid for these homes was €383,000.
Investors who remain in the market are now focusing on buying larger homes. The Kadaster explains that bigger properties are more likely to qualify for the free rental sector, where owners have more freedom to set the price of rent.
