'Deregulate housing market thoroughly'

At the VVD congress on May 25 in Nieuwegein, the report of the WoningMarktMeester working group was presented by chair Bert Wijbenga-Van Nieuwenhuizen to VVD Member of Parliament Peter de Groot and then discussed by VVD members. WoningMarktMeester gives two important advices in this report, for (re)designing the housing market from the liberal values of freedom and autonomy. The report was prepared by the VVD's scientific institute, the Telders Foundation.

Housing market shortages have only increased in recent years, the researchers write. There is too little supply of life-sustaining senior housing, students cannot find rooms in the city where they are studying and couples put off cohabitation plans because there is no suitable housing. Despite the shortages and imbalances in the housing market, the government is not relaxing regulation around housing. The percentage of land designated for housing remains limited, municipalities impose additional requirements on new construction projects making projects unprofitable, and restrictions on home sharing remain. On top of this are far-reaching preservation projects that further complicate the construction and conversion of homes. All this makes housing prices rise and competition between citizens increases.

'Review role of government'

For there to be a healthy functioning housing market that provides sufficient, appropriate and affordable housing, the role of government in the housing domain must be drastically revised. Private capital is turning away to a large extent in recent years and the political and administrative need to intervene is increasing at both local, provincial and national levels. Every intervention is taken with the best of intentions, but at the same time, with every intervention the housing market becomes less attractive to invest in and citizens and market participants become trapped between different layers of regulation. This while €380 billion in investment is needed to meet the need for new housing. Such amounts can never be raised by government and housing corporations alone. Institutional investors are therefore indispensable.

National direction

To protect the free choices of citizens and promote the functioning of the market, the Housing Market Master's report offers two key pieces of advice for (re)designing the housing market from the liberal values of freedom and autonomy. The product of housing is always linked to scarce land. Therefore, first, it is justified to take national control of spatial planning and to divide the Netherlands into the main functions such as housing, nature, activity, infrastructure and agriculture. Second, the market for housing must be thoroughly deregulated and the government must provide sufficient stability with consistent policies so that market parties regain confidence and invest in housing construction.