The large-scale sale of former rental properties, often referred to as “selling off,” is widening inequality among young adults. New research by the NVM estate agents’ association shows that this trend is making it harder for them to enter the housing market.
Estate agents say that a surge in rental properties being put up for sale last year led to a record number of first-time buyers purchasing their first home. At the same time, many others saw their chances of buying a home decline.
According to the NVM, a former rental property priced at €400,000 requires a gross annual income of around €84,500 to secure a full mortgage. By contrast, when the home was rented, it was accessible to someone earning €53,500 per year. This estimate is based on the common requirement that tenants earn three times the monthly rent.
Unbridgeable gap
The NVM describes this income gap of more than €30,000 as impossible to bridge for many first-time buyers. The organisation notes that the contrast is even greater for properties that would fall into the regulated mid-market sector. This “widens the gap between first-time buyers with and without a financial buffer,” said Lana Goutsmits-Gerssen, estate agent and chair of the NVM-Wonen professional association.
The association has long expressed concern about the rising number of rental homes being sold. It says stricter rental regulations have made letting less attractive for real estate companies. This is also putting pressure on investment in new housing.
The rental market shrank sharply last year. The number of newly rented private-sector homes was 38 percent lower at the end of the year. This was a sharp drop compared to the year before, according to the NVM. Due to the steep drop in supply, private-sector rents also rose significantly.
@anp | NEWS BRAINPORT
