It is uncertain whether the extra money that the previous government made available for accelerating housing plans has actually led to more new construction. According to the Court of Audit, many projects would have started without the 1 billion euros ‘housing building impulse’.
The Court of Audit gives the cabinet a firm thumbs-up by stating that the substantiation of the government grant is inadequate. ‘The minister lacks reliable information on whether this scheme will enable faster, more affordable and more houses to be built,’ the Court of Audit writes in a report released today. The Court of Audit checks whether the expenditure of the Dutch central government is lawful and efficient and in this case has serious doubts whether the scheme in its current form is achieving the intended goals.
Former Interior Minister Kajsa Ollongren, now Defense Minister, was responsible for housing construction in the previous cabinet. She claims that almost 140,000 houses have been added thanks to the stimulus. The new cabinet plans to use another 1 billion euros to encourage project developers and contractors to build additional houses. The target of 75,000 homes per year in recent years, which has been amply achieved, has been increased to 100,000 new homes per year in order to reduce the housing shortage.
De Jonge wants to tighten policy
In response, the new Minister for Housing Hugo de Jonge has stated that the Residential Building Impulse will remain a ‘core element’ to stimulate housing construction throughout the Netherlands. He has read the report of the Court of Audit and wants to tighten up certain aspects of the policy.
The extra money was made available in 2019 and in the two years since, 93 municipalities have received approval for a contribution. Ultimately, 855 million euros was paid out. According to the Court of Audit, ‘displacement’ has not been taken into account when accounting for expenditure. Other housing projects cannot continue due to a shortage of construction workers, building materials and civil servants, or only later. There is also the risk that construction projects would have continued without the extra money.
Nice addition, but no demonstrable effect
The main reason for this is that the houses should be completed within three years. This is only possible for projects that are in an advanced stage, otherwise there is not enough time. Hard figures are not yet available because the houses have not yet been completed.
The Court of Audit refers to a ‘gift effect’. In most cases, the municipalities received just over 5000 euros extra per house. ‘Nice bonus, but no demonstrable effect.’ The question is also whether the houses have become more affordable, even though that is one of the government’s goals. Minister De Jonge announces that he will monitor this more closely.
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