Mortgage rebates to end in 30 years

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Mortgage interest tax rebates are to be gradually reduced and finally completely abolished in 30 years time. Rents must go up by 2 percent a year on top of inflation.

These are the main points of an agreement between home owners’ interest group Vereniging Eigen Huis (VEH), tenants’ organisation Woonbond and housing corporations association Aedes in a reform plan to be published on Thursday.

VEH spokesperson Hans André de la Porte on Wednesday confirmed a report on the plan published by national newspaper de Volkskrant.

This is the first time these interest groups have reached agreement on necessary reforms to the housing market. It took the three organisations 18 months of negotiations.

The accord is intended to restore mobility to the housing market.

The rebate, known as the hypotheekrenteaftrek, was introduced as long ago as 1893 and has been a sensitive topic in Dutch politics for decades. Opponents point out that it costs the state billions in tax revenues annually and has contributed to pushing up house prices.

(gsh/imm)

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