The province of Gelderland is going to build 12,000 of the 104,000 housing units it plans to build through 2030 by adding on. According to ProfessorPeter Boelhouwer, this is "definitely going to help solve the problems in the housing market." "Nonsense," says Erik-Jan de Bont of the KOMO Foundation. "Topping up is an emergency measure to expand the housing supply that you can only apply once."
"It is not a structural solution to the root causes in the housing market problems, such as high prices and poor accessibility," De Bont informed in response to the earlier news.
"From the standpoint of quality thinking, it is crucial to distinguish between remediation of an undesirable situation and the corrective action that resolves the cause of that undesirable situation so that it does not recur in the future."
With developments like opting up and splitting up, according to De Bont, "it seems as if the policymaker is creating additional air in the housing market in the short term. In the long term, on the other hand, these policies further inflate the housing market. Topping up as part of the housing strategy does not solve the problems of the housing market. It is a remedial measure and not a corrective measure."
Policymakers should address housing stagnation and housing market problems as two separate systems. One is related to use of space and the other is related to incentives in the banking system.
"DNB indicated it back in 2021: you solve the housing market problems with effective policy measures focused on financial products. A bank does not provide a service; a bank sells mortgages. For banking, a consumer is someone who buys a mortgage to pay for a home. You wear them down as much mortgage as possible at the lowest possible risk. Housing market policy should aim to curb that."
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