You are at: Home / Publications / Summaries by year / Summaries 2006 / Counting the cost of housing

Counting the cost of housing

Original title: Uitgerekend wonen.

The Dutch government exerts a great influence on the housing costs incurred by households. Tenants can apply for housing subsidy, while owner-occupiers can set their mortgage interest against their income tax. These measures have existed for a long time, but are regularly adjusted. This most recently occurred with the additional borrowing rule, which has limited the tax-deductibility of mortgage interest.
Changes such as these have a direct financial impact both on households and on the government. However, it is also possible that households will modify their behaviour, for example by moving to a smaller or larger home than they initially intended. The choice between renting and buying may also change.
This publication estimates how sensitive households are to (changes in) the financial regulations in relation to housing. It then explores the financial consequences and behavioural changes resulting from three modest and two larger policy changes.