Incentives for investment by Dutch Housing Corporations.
Weinig prikkels voor woningcorporaties om te bouwen
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The analysis shows that incentives for new production were weak in the last decade. The housing corporations gained financial and operational independence in 1995. Financial incentives for building new houses decreased after direct subsidies for new production fell away in 1997. Besides, the opportunity to buy land cheaply has decreased, since local authorities decreased the outlay of building lots for social housing. Corporations have not compensated the decreased outlay of the (subsidised) land by local authorities by purchasing more expensive land for new social houses. Taking the current policy framework as given, we discuss several options which may improve investment incentives for corporations to build new houses or may reduce restrictions for this investment.
This publication is in Dutch.