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The Housing Market In The Netherlands.pdf

ecp_457_en.pdf

Preview of The housing market in the Netherlands

🔗 Source: ec.europa.eu

📊 Size: 718 KB

👤 Author: ekeloli

⬇️ Downloads: 84

Summary

The Dutch housing market has been shaped by highly interventionist public policies, leading to structural problems and negative consequences for the economy. Government intervention through spatial planning, regulation, and subsidies has resulted in high levels of leveraged housing wealth. The market is characterized by low taxation of home ownership, generous mortgage interest deductibility, and extensive social housing, which have led to distortions in both the purchase and rental segments. These distortions have resulted in a sizable burden for public finances, with foregone revenues from mortgage interest deductibility amounting to around 2% of GDP. Innovations in mortgage financing have increased vulnerabilities of the banking sector, and households could face an increased debt service burden should interest rates rise. Comprehensive reforms are necessary to reduce distortions, improve efficiency of capital allocation, and increase economic growth and job creation.

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Description

The Dutch housing market has been shaped by highly interventionist public policies, leading to structural problems and negative consequences for the economy.

Technical Information

File Format: PDF
File Size: 718 KB
Pages: 31
Language: EN
Author: ekeloli
Total Downloads: 84
Last Updated: 1 week ago

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