annual assessment<\/a> of the Dutch economy published Wednesday, the IMF said housing remains one of several \u201cbinding capacity constraints\u201d weighing on growth, alongside problems in energy, labor and nitrogen policy. The organization said existing coalition plans contain \u201cuseful supply-side measures,\u201d but argued broader reforms are still needed to address the housing crisis.<\/p>\nThe IMF specifically called for \u201can overhaul of rental market regulation and stronger financial incentives (and higher profitability) for mid-segment private developers and investors\u201d to \u201ceffectively and durably tackle the housing crunch.\u201d It also said simplifying land-use rules, reducing fragmentation in local building regulations and limiting construction objections could materially increase housing supply.<\/p>\n
The organization warned that unresolved nitrogen restrictions are continuing to delay investment and create uncertainty for housing projects. \u201cUnresolved nitrogen-related constraints remain a key impediment to investment by sustaining permitting uncertainty across industry, infrastructure, and housing,\u201d the IMF said.<\/p>\n
The IMF also criticized Dutch housing finance policies, saying current borrowing rules are putting \u201cundue upward pressure on house prices\u201d and hurting affordability. It recommended lowering maximum loan-to-value limits to 90 percent and gradually phasing out mortgage-interest deductibility.<\/p>\n
Fabian Bornhorst, the IMF mission chief for the Netherlands, separately criticized the Dutch mortgage-interest deduction in comments reported by NU.nl.<\/p>\n
\u201cThat is an expensive measure,\u201d Bornhorst said. \u201cGradually phasing out mortgage-interest deductibility would increase revenues and resolve bottlenecks in the housing market.\u201d<\/p>\n
Bornhorst also said the Dutch government should focus first on structural bottlenecks \u201cwhen it comes to the housing market or energy.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"The International Monetary Fund said the Netherlands needs tougher housing reforms, including changes to rental market regulation, warning…\n","protected":false},"author":2,"featured_media":587654,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[84,1294,56,54,55],"class_list":["post-587653","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-business","tag-economy","tag-uk","tag-united-kingdom","tag-unitedkingdom"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/587653","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/comments?post=587653"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/587653\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media\/587654"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media?parent=587653"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/categories?post=587653"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/tags?post=587653"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}