February 21, 2023

Budget Day 2021: Key Points For the Dutch Housing Market

22-09-2021: Translated from

In The Hague, the Budget Memorandum was presented to the House of Representatives. What are the most important points and measures regarding the housing market?

The General Considerations on the Budget Day documents began on Wednesday, September 22. The theme of the housing market plays an important role. The plans presented by the caretaker Cabinet in the Budget Memorandum on the housing market are mostly not new, although there are some adjustments and additions.


Until 2030, 900,000 additional homes are needed. The government will therefore invest a total of €1 billion in housing over the next ten years. This means that every year €100 million will be available for housing construction. In this way, the Cabinet wants to give an impulse to the construction of affordable housing.

Sustainable homes and buildings

The Cabinet is allocating €1.5 billion for making homes and buildings more sustainable. This is in accordance with the agreement in the Climate Agreement that all homes and buildings must be free of natural gas by 2050. Of this €1.5 billion, €500 million will go to a national insulation program for rental and owner-occupied homes. Almost €300 million is available as an allowance for the purchase of hybrid heat pumps. More than €500 million will go towards making social buildings such as schools, hospitals and police buildings more sustainable.

Adjustment of transfer tax exemption for first-time buyers

On January 1, 2021, a one-time exemption from transfer tax for first-time buyers under the age of 35 was introduced. Since April 1, the exemption does not apply to homes of €400,000 or higher. The government is now adjusting the policy around the exemption in a few ways. The most important: in order to qualify for the exemption, buyers must sign a statement at the notary that they will use the house as their main residence. If, after signing the purchase agreement, unforeseen circumstances (divorce or death) prevent the buyer from using the home in this way, an exemption or a lower rate of 2% transfer tax will apply as of next year.

Purchase protection

As of January 1, municipalities can make use of buy-out protection. This allows them to protect certain areas in cities against houses being bought up for rent. The aim is to keep affordable owner-occupied housing available for people who want to live in it themselves.

Housing for special groups

There is already a regulation in place for more living space for special target groups such as students, the homeless and status holders. The government will extend this for ten years. For this purpose, €10 million is available each year.

Owner-occupied housing scheme

The owner-occupied home scheme will be adjusted in three respects. The government wants to make the scheme fairer by removing unintended restrictions on mortgage interest deduction. For example, for people who buy a house together with a partner and had already owned a house themselves. Or for people who have a house with a partner who dies.

Social rental housing

The government has frozen rent increases for social housing in 2021. Large landlords, such as housing corporations, will receive compensation so they can still invest in new construction, maintenance and sustainability. For other landlords there will be a scheme for maintenance and sustainability of homes. Through a subsidy scheme, landlords can apply for support to make their homes as sustainable as possible. The scheme will apply until 2025 and a total of € 160 million will be available for this purpose.

Sale under conditions

Housing corporations and project developers that buy back homes from private individuals ('conditional sales'-homes) will no longer pay transfer tax as of January 1, 2022 (this year it was 8%). VoV homes are sold by housing corporations and project developers with conditions at a substantial discount to starters and people with lower middle incomes. With the measure, these homes also remain affordable for the next private buyer.