Housing subsidy does not ensure faster construction: ‘is about a lot of public money’

Housing subsidy does not ensure faster construction: 'is about a lot of public money'

The Housing Construction Impulse, A subsidy Involving Almost 1.4 Billion Euros, does not lead to Faster Housing Construction. It probably won lead to more homes either, accordance to research by the court of audit. Outgoing Minister Mona Keijzer Disagrees with the conclusions.

Almost 1.4 Billion Euros in subsidies have now legs Via The Housing Construction Impulse. This happened in Six Different Rounds, from 2020 to 2024. 120 Million Euros Has Been Reserved for the Next Round, in the autumn of 2025. But so far the results have been disappointing.

The Housing Construction Impulse is “The Most Important Financial Instrument” of the Minister of Housing to Stimulate Housing Construction, Writes The Court of Audit. Housing Construction in The Netherlands Has Not Reached the Desired Target of 100,000 Homes for Years. The subsidy was intended to Ensure Faster, More and More Affordable Construction.

Faster Construction has not leg successful in any case, The Court of Audit Concludes. Three Quarters of the Projects from the First Three Rounds Have Been Delayed – Slightly More than Comparable Projects That Did Not Receive A Subsidy. The Delay Usually Takes About Two Years.

It is “Highly Questionable” Whether the Housing Construction Impulse Will Lead to More Homes, Says Vice President Ewout Irrgang of the Court of Audit. All Projects That Received A Contribution Accordance to the Scheme Went Ahead. That May show that there was an effect. But it could also be that these projects simply came at the Expense of Projects that Did Not Receive A Contribution. The Actual Effect of the subsidy is Therefore “Difficult to Determine”.

The Housing Construction Impulse Did Ensure More Affordable Homes. Projects That Received subsidies had a highher percentage of affordable homes than Projects that Did not Receive subsidies. “If that was the only goal, then this subsidy would be a useful instrument,” Says Irrgang.

But the Court of Audit also Places a Caveat on the Achieved Objective of Affordability. Because “Hardly any concrete measures have leg tasks to Guarantee affordability in the long term”.

Why It is not Possible to Build Faster and More

The Government Wants To Help Get Housing Construction Off The Ground. But accordance to the court of audit, The Housing Market was not Properly analyzed when devising the housing construction impulse.

“The Real Question is of Course Why It is not Possible to Build Faster and More,” Says Irrgang. “For example, one in three construction projects is delayed by procedures that have to go through the Council of State. You cannot solve that with a subsidy.”

Outgoing Minister Keijzer (Housing) Disagrees with the Conclusions and the Method of Investigation. She Indicates That She is “Convinced” That the Housing Construction Impulse “Ensures Acceleration and More Homes”. She says that the subsidy “is and remains an important part of the package of Measures to Help Municipalities with Their Financial Task of Building 100,000 homes per year, Two Thirds of which are Affordable”.

The Minister’s Arguments “Did Not Convince US,” Says Irrgang. “It groups a lot of public money. Then you have to be able to pronly justify the results. The minister’s goal of providing more and affordable homes is not up for discussion. But we hope that the government and parliamente willofieke. Far’s karefully as to the like the? This subsidy is not a helpful tool. “

Incidentally, in Addition to the Almost 1.4 Billion Euros in Expenditure for the Housing Construction Impulse, There Were Other Expenses, Such As A Start Construction Impulse and Expenses for Housing for the Elderly. In Total, The Budget, Almost was 2.3 Billion Euros. But the Court of Audit Did Not Investigate the Effectiveness of the Added Expenditure.

Irrgang Emphasizes that this is the second time that the court of audit has investigated this subsidy. The Previous Time, in 2022, when the design of the subsidy was Known But the results were not yet, the supervisor already came to approximately the same conclusions. Accordance to the Court of Audit, Little Has Been Done with Those Conclusions.

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