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Generation Y as starter in the Dutch housing market : Expectations, bottlenecks and possible solutions

Rigterink, T.E. (2017) Generation Y as starter in the Dutch housing market : Expectations, bottlenecks and possible solutions.

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Abstract:For starters it is an increasing problem in the Netherlands to buy or rent a home. These problems vary from regulations set by the government to the inherent situation of starter. The current starter is usually characterized by having a middle income, temporarily working contracts, a possible study debt and being flexible. In connection to the housing market in the Netherlands, which is represented by three housing segments, the characteristics of starters result in certain difficulties. The main problem that arises is that starters are not eligible for both the social housing and mortgage sector: ‘starters fall between two stools’. The objective of this research is to identify the housing expectations of starters, together with the bottlenecks that hinder these expectations and identify possible solutions to eliminate these bottlenecks. The structure of this research is, therefore, derived from the objective. Literature review was conducted in order to discover the expectations and factors that influence homeownership of Generation Y. These findings gave new ground for investigating the current situation in the Netherlands. Focus groups located in different parts of the Netherlands and consisting of members of KIVI the Royal Netherlands Society of Engineers and employees of the mortgagor Obvion were then used to identify the expectations of starters in the Netherlands, together with the problems they face in the housing market. These problems were then presented to actors on the housing market by means of semi-structured interviews. Interviews were held with two housing corporations and the association of housing corporation to get an overview of the problems in the rental segment. Subsequently input from conferences and reports regarding this issue were used to get a comprehensive view on the bottlenecks that starters face in the Dutch housing market. The information that is used from conferences is based on the conference ‘EIB jaarcongres 2017’. The following actors gave their view on the housing market policies: CEO of EIB, Stef Blok (Minister for Housing), and representatives from the political parties VVD, Groenlinks, D’66, PvdA, CDA. Lastly, propositions stemming from political parties and solutions presented by institutions created the framework for possible solutions to eliminate the aforementioned bottlenecks. The housing expectations of starters were distinguished in attributes of the house, location and ownership. Comfort, proper accessibility and a feeling with regard to the appearance and neighbourhood were the main findings in this section. In addition to these expectations, the bottlenecks that they faced gave ground for the sequential parts of this research. The main conclusion in the bottlenecks was recognized as starters being the victim of the highly regulated housing market in the Netherlands. These regulations encompass unfair subsidies and fiscal incentives, controls of the housing supply through stringent spatial planning and rent regulations. Collectively, these interventions exclude starters from the housing ladder and limit starters in realizing their living needs. Three implications derive from the mentioned bottlenecks: (1) ensure a better match between supply and demand though spatial planning, (2) ensure sufficient supply and affordability in the rental segment, and (3) enable starters to realize their living needs in the owner-occupied sector. Solutions presented by the institutions focused mainly on creating a bigger middle rental segment by means of transferring quality social housing to the free rental sector where necessary. This could be done by creating a greater middle segment through administrative or legal separation of corporation properties based on housing quality in terms of WOZ-value and home appraisal. The problems in owner-occupied sector could for example be addressed by an extension of either the financing or funding for starters to obtain a mortgage more easily. The housing market requires a profound change in policies to create a stable and healthy housing market in which there exists a fair distribution of opportunities for entry, starting with the accessibility and affordability for starters in all of the housing segments. This research has therefore mapped the bottlenecks and relevant possible solutions, together with a diagnosis in order to address the problem that is present in the current housing market in the Netherlands. The figure representing the bottlenecks and implications that derive from these bottlenecks is combined with the possible solutions that best suit the given problems.
Item Type:Essay (Master)
Faculty:ET: Engineering Technology
Subject:56 civil engineering
Programme:Construction Management and Engineering MSc (60337)
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