News item | 19-09-2023 | 3:30 PM
As a purchasing power measure for the lowest incomes, the government is increasing the rental allowance by more than €30 per month for 1.5 million households. In addition, additional millions are available for investments in affordable housing. This is stated in the public housing budget for next year, which the cabinet presented on Budget Day.
Additional money is available for investments in the construction of affordable new homes through the start-up construction incentive and the sixth tranche of the Housing Development Incentive. The Start Construction Impulse will be increased from €250 million to €300 million. Projects that are in danger of getting stuck due to changing economic circumstances can be revived by a contribution from the Startbouwimpuls. €300 million has been allocated for the sixth tranche of the Housing Development Incentive. The projects that will receive money for this will be announced before the summer of next year.
Minister de Jonge: “Too many people have high monthly costs and cannot find affordable housing. In addition, our population will grow in the coming years and the conditions for building have not become easier. We cannot afford to stand still in the field of public housing. Our task is significant; up to and including 2030, 981,000 homes must be added, two-thirds of which will be affordable for people with a low or middle income. That is why we will continue to build at a faster pace and with more control in the coming year and we will work to improve affordability.”
Purchasing power and affordable housing
The government has set aside an amount of €750 million to provide more housing allowances to the lowest income earners. About 1.5 million households, including 300,000 families, will receive extra support in paying their monthly costs. In addition, Minister De Jonge is preparing legislation that will entitle approximately 116,000 households to housing allowance for the first time.
Middle-income earners should be able to find affordable rental housing more often. That is why the preparation of the affordable rent bill continues. With this bill, the rent of more than 300,000 mid-rental homes can be reduced by an average of € 190 in the long term.
Continue building at more locations
Provinces, municipalities and the national government will continue to implement the Housing Deals unabated. This contains agreements about the number of homes to be built, for whom and in what locations they will be built. Government and market parties are also working with the regions to see which places may be more suitable for developing large-scale construction. Regions that want to realize additional homes can also count on extra support. The bill for directing public housing provides governments with the right tools to manage now and in the future how much, for whom and where construction takes place. Preparations for this bill continue.
Isolation in vulnerable villages and neighborhoods via municipalities
The BZK budget proposal also sets aside €425 million for making homes in vulnerable villages and neighborhoods more sustainable. This money is intended for insulating homes and reducing energy bills for homeowners and homeowners’ associations and will be added to the resources for the local insulation approach. Municipalities with relatively many vulnerable homeowners and complex problems receive the most extra resources per home. This includes at least the urban focus areas and municipalities in the border regions.