House construction lagging

16/09/2010 15:00
  • Substantial fall in building permits for rental homes
  • 40 percent fewer homes completed for buyers
  • Mainly fewer one-family houses completed

According to figures released today by Statistics Netherlands, building permits were issued for more than 25 thousand dwellings in the first half of 2010. This is a 21 percent decrease compared with the same period in 2009. Building permits for homes in the rental sector, in particular, fell sharply: by 28 percent. The number of permits for homes for owner-occupiers fell by 18 percent. The fall was largest for housing corporations: 34 percent fewer permits were issued to these organisations.

Nearly 18 thousand homes were completed in the first half of 2010. This is 33 percent down on the same period in 2009, and the lowest number in the first half of the year since electronic house construction surveys began in 1995. The number of houses completed for buyers fell particularly strongly, by 40 percent. The number of homes competed for the rental market fell by nearly 18 percent.

Just over 10 thousand one-family houses were completed in the first half of 2010. This is nearly 6 thousand fewer than twelve months previously. This 36 percent decrease is larger than the decrease in the completed number of multi-family homes, which fell by 30 percent.

The number of homes for which a building permit was issued but which had not yet been completed also fell further. On 1 July 2010, nearly 178 thousand dwellings had still to be completed, 6 percent fewer than twelve months previously.