Close to challenges and opportunities in the housing sector
High demand and limited supply, the challenge to build more homes is severely hampered on various fronts in the Netherlands. The rental market has to contend with uncertainty due to amended tax and tenancy legislation along with strict rental indexation. Construction options are further constrained by stringent nitrogen regulations, grid congestion, and water-related issues. In addition, slow permitting procedures and stricter requirements for residential dwellings and public spaces are causing further delays.
Transformation and repurposing as solutions
A variety of housing options are required in order to meet the challenge of residential dwelling construction within the limited space available. Existing buildings need to be converted and repurposed. The acquisition of land, the procurement of the requisite permits and the careful documentation of legal agreements are essential aspects of this process. Attention also needs to be devoted to tax and notarial issues, as well as environmental and construction law, such as the new Environment and Planning Act.
Various fields of expertise need to be involved for the successful development of the living environment and the achievement of sustainable solutions for the housing challenge.
Attention to tenancy legislation amendments
The rental market is currently an uncertain arena for property developers and investors due to the amendment of tenancy regulations. Planning long-term investments is complicated by frequent amendments to both tenancy law and tax legislation. Whether this involves rental protection and indexation or tax benefits and obligations, each amendment may have a major impact.
It is important to consider matters carefully and to think of creative solutions, such as temporarily letting residential dwellings under tailored short-stay contracts.
Sustainable construction
In the case of sustainable construction consideration must be given to the choice of location, nitrogen issues, the development of heating grids, guaranteeing water quality, and the execution of climate-neutral, and rain and heat-resistant building projects. The selection of sustainably options in relation to these aspects can have an impact on construction costs but simultaneously contribute to the reduction of CO2 emissions in the building sector, the creation of future-proof neighbourhoods and the achievement of sustainable housing.
Specialists with expertise at the intersection of construction legislation, environmental regulations and administrative law can help with the development of innovative and sustainable solutions.
Municipal management of housing construction
The challenge of housing construction in the Netherlands demands robust municipal management and urban redevelopment. The municipal council’s role as a land manager may help stimulate private building projects under public law, which may accelerate housing construction and improve quality. A limited amount of land is available. Municipal councils must therefore utilise effective tools, giving consideration to expropriation, buyouts, anterior agreements, strategic procurement and pre-emptive rights. At the same time, they need to take state aid and the Didam judgment into account.
Municipal councils and market players can strategically utilise these legal instruments to effectively tackle the housing construction challenge and promote sustainable local development.
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