More measures are needed to fix a multi-billion euro cash shortage facing housing associations, according to Housing Minister Elanor Boekholt-O’Sullivan. The government wants to help associations find nearly €20 billion to build new homes and make existing ones greener. However, the minister warned that current political plans only solve the financial problem on paper.
The €19.4 billion shortage does not mean the associations need the cash immediately, as they can borrow money based on future rent. Even so, the gap makes it very difficult for them to meet their target of building 30,000 new homes every year.
On paper, the government’s plans would actually create a financial surplus. The coalition aims to give associations hundreds of millions of euros a year starting in 2028, raise rents for high earners, and use relaxed European rules to boost investment. Together, these steps are supposed to bring in over €22 billion.
However, the minister said there are big catches to these estimates. For example, the calculations do not include the high interest rates caused by the war involving Iran. If interest rates stay high, housing associations will have much less money to spend. She is now setting up an advisory committee to look for better, long-term solutions.
@anp | NEWS BRAINPORT
