Week of the Starter

The position of the starter on the housing market is still poor. Supply in the lower price brackets is limited and competition is fierce. Prices continue to rise: in August they even rose again by 8.2%, the biggest price increase in a year and a half. No wonder buying start-ups are having a hard time. Their share of the housing market fell to an absolute low in the last quarter of 2019, according to the Land Registry’s figures: 30% of the total number of transactions was accounted for by them. In 2013, that percentage was still higher than 50%.

Young buyers in particular are struggling. Not only is there more competition from newcomers due to high prices, but the stricter mortgage rules mean that young starters have to contribute more equity and thus save longer. Moreover, the high rents they have to pay (at least if they do not stay with their parents) often make it impossible for them to save. I already explained in my previous column that the abolition of transfer tax for starters will hardly help them to catch up. In the first seven months of this year, however, Rabobank did see a small increase in buyers under 35 years of age. It remains to be seen to what extent these are all starters, because there are also people in this age category. Moreover, the increase in the share relates to a market that is still shrinking.

In the coming week (28 September to 4 October), the real estate agents’ association NVM, together with nine other organisations, has proclaimed Week van de Starter (Week of the Starter). On the website www.startenopdewoningmarkt.nl starters – at least: people who want to start – will find reliable and complete information about the possibilities. This applies not only to the purchase market, but also to the rental market. In addition to information, the website gives an overview of planned consultation hours, webinars, information evenings, open houses and starter cafes. Of course, I very much welcome any improvement in the provision of information, so please take advantage of it. But I keep shouting: there will only be a really good start for the starters if sufficient affordable offerings are developed for them.