The maximum price for an apartment or house with an NHG guarantee will go up to €435,00,000 next year, or €461,000 for buyers who pledge to invest in energy efficiency and other sustainable measures.
More than 40% of current transactions involve properties with an NHG guarantee, which is particularly popular among first-time buyers.
The NHG is a government scheme that covers homeowners’ losses if they have to sell their house for less than the outstanding mortgage because of divorce, illness or unemployment. Homeowners pay a surcharge of 0.7% on their mortgage to cover the cost of the scheme but are often able to borrow at lower rates because of the reduced risk.
Although average house prices have gone over the past year, the NHG limit is based on multiple years and that means the sharp rises in 2021 and early 2022 still have an impact. The maximum covered under the scheme is currently €405,000.
Average price for a Dutch apartment
The drop in house prices which began last August, also means the new NHG limit is above the average amount buyers are paying at present. According to the national statistics agency CBS, in September, the average price paid for a flat or apartment was €422,175.
That is an average, of course, covering all types of property, and there are also considerable regional variations.
After falling since last August, house prices have now been edging up month on month for the past four months, in a further sign that the market is stabilising. In September, the increase was 0.6%, in line with August and July’s increase.
House prices fell most in Utrecht
The CBS has also been looking at the situation in the four big cities and found that prices in Utrecht in the third quarter of this year were 8% lower than they were a year ago. Nationwide, the decline is 4.6%.
In Amsterdam, prices are down 5.7% and in The Hague 5.8%. However, unlike in Utrecht, in both cities, there has been a sharp rise in the number of transactions and estate agents have reported that prices are again going up. There was also an increase in the number of apartments sold between July and September but not detached or row houses.
