As mortgage interest rates rise, house price growth in the Netherlands is slowing. What does this mean for homebuyers, and what are the prospects for the Dutch housing market in 2027?
Now that we are well into October, it seems like a good moment to assess what has been happening in the Dutch housing market this year and what the early prospects are for 2027. The year seems to have sped by!
How rising mortgage rates affect house prices
If you are in the market for buying a home in the Netherlands, you have probably noticed that mortgage interest rates are going up, mainly due to a combination of global economic factors. I know a lot of people are worried by this. After all, higher interest rates generally reduce how much you can borrow, because more of your monthly budget goes on interest.
However, at the same time, higher interest rates can present an opportunity for buyers because they also affect house prices. By making buying a home more expensive, they can dampen demand and reduce how much people are willing to pay. This may give you more room to negotiate on the purchase price, although higher borrowing costs can still make buying a home more expensive overall.
You’ve probably seen the news reports about Dutch house price growth slowing down. According to ABN AMRO’s October 2026 housing market forecast, house prices are expected to rise by 3.8% this year and 2.5% in 2027, with Amsterdam leading the slowdown. Other economists paint a similar picture.
House prices have dropped in some places
National statistics agency CBS said earlier this month that, in the second quarter of 2026, prices for existing homes were up 4.2% on the same period in 2025. That is well down on the first quarter, when prices were up 5.2%, and marks a continuation of a longer trend. House price growth is slowing, and in some areas prices have actually gone down.
From my own experience talking to clients, I know that fewer properties are being sold for more than the asking price and, in some cases, people are signing on the dotted line after offering less than the seller wanted. This is part of the adjustment as the housing market responds to higher interest rates, although competition remains strong in many areas.
For buyers, this is welcome news. Your monthly mortgage repayments may be higher than you expected, but there may also be a little more room to manoeuvre on the actual purchase price. Your estate agent will know the situation in the area where you are hoping to buy, so don’t be afraid to ask. It’s their job to help you get the best possible deal.
Of course, knowing how much you can borrow is important too. Our Dutch mortgage calculator can give you an initial indication of your mortgage budget before you start looking for a home.
No major changes to mortgage interest tax relief in 2027
By the way, in case you were wondering, the government currently has no plans to phase out the mortgage interest tax relief you can claim on your mortgage interest payments, provided you meet the relevant conditions, despite calls from economists to reduce or eliminate the tax break altogether.
In fact, there was little in the government’s 2027 spending plans published in September to have an immediate impact on the housing market. The government is planning to invest heavily in stimulating the development of new homes, including both rental and owner-occupied properties. This could lead to more homes becoming available in the coming years, although it will take time for these plans to become reality.
And if you can wait a while, there are definite advantages to buying a newly built home, as I have written about before.
What changes for homebuyers in 2027?
There were two bits of good news for homebuyers, though.
Firstly, the maximum property value for which eligible buyers under 35 can claim the transfer tax exemption is going up from €555,000 in 2026 to €615,000 in 2027. To qualify, you must be aged between 18 and 34 when the property is transferred, intend to live in the home yourself and not have used the exemption before. It does not necessarily have to be your first home.
Secondly, the National Mortgage Guarantee (NHG) threshold is rising from €470,000 to €500,000 in 2027. NHG provides a financial safety net for eligible homeowners who experience difficulties paying their mortgage due to certain circumstances beyond their control, subject to the scheme’s conditions.
Both changes could offer additional opportunities if you are planning to buy a home in the Netherlands next year.
In a market like this one, every little helps.
