The new year has begun and always there are small or big changes to consider when buying a home. We have conveniently listed the most important changes for you.
Implementation of the Environment Act
The Environment Act brings a major change in how the Netherlands deals with its living environment. Starting in 2024, this law will replace a patchwork of rules and permits that currently govern our spatial planning.
It promises a smoother process for project development, with more room for local decision-making. Citizens and businesses get clarity through one-stop shopping for environmental issues.
This new law is not only about building and housing but also touches on issues such as water management, environment, nature and landscape protection. Merging 26 existing laws into one comprehensive law will allow plans to be reviewed more quickly.
Also important: the Environment Act aims to better protect the environment and promote sustainable developments so that future generations inherit a healthy and safe environment.
Environment law and consolidated legislation
The Environment Act is going to revolutionize by bringing together a wide range of existing regulations, significantly simplifying the legal landscape surrounding spatial projects and the environment.
All this will affect both citizens and businesses, with the goal of a more cohesive approach to the physical environment.
26 laws will be incorporated into the Environment Act
In 2024, the Environment Act will be a major change in our legislation. It combines and modernizes numerous legal frameworks that affect our physical environment.
- Environmental legislation is being simplified by merging several environmental laws. This makes it easier to regulate environmental issues.
- Construction legislation gets an update, allowing construction projects to start faster and more efficiently.
- Nature conservation laws are being integrated, providing a clear policy on nature protection.
- Water management is another important aspect where different water laws come under one roof. This makes control of water quality and quantity more effective.
- Land use planning is also gaining momentum with streamlined procedures for urban development and land use.
Changes in home value and taxes
Find out how the latest changes in home value and taxes in 2024 could affect your financial situation; keep reading for more insight and preparation for what’s to come.
Increase in home value limit for the starter exemption
Good news for first-time buyers on the housing market: from 2024, they will be allowed to buy a house up to €510,000 without paying transfer tax! This makes it easier for young people between the ages of 18 and 35 to find a place of their own.
With this, the government hopes to improve housing accessibility and give first-time buyers a boost.
An additional benefit is that this brings more movement to the market. Buying your first home becomes a lot more attractive without those extra costs. This is how the government helps young people on their way to their dream home.
Furthermore, we address another positive development: the increase in the NHG limit.
Increasing the NHG limit
In 2024, the NHG limit for taking out a mortgage goes up. This means you can borrow up to €435,000 with the guarantee of the National Mortgage Guarantee. If you borrow extra money for energy-saving measures, you may even go up to €461,100.
This increase helps buyers get secure financing for a home that is worth more.
The commission you pay for an NHG mortgage remains the same, despite the higher limit. You still pay only 0.6% on the amount of the mortgage. This makes taking out a mortgage with NHG attractive, especially if you choose a sustainable home with energy-saving features.
Elimination of the jubilee tax credit and adjustments to the gift exemption
The famous jubilee barrel will disappear by Jan. 1, 2024. Parents and other family members can then no longer donate €100,000 tax-free to purchase a home or pay off a home mortgage.
This has major implications for potential homebuyers who had counted on this type of donation. Fortunately, some form of support remains. Thus, one retains the ability to use a one-time increased exemption of €31,813 for children between the ages of 18 and 40.
This scheme helps finance student debt or a remodel, but may also be used to purchase a home.
With these changes, the government is encouraging first-time buyers to buy their first home in other ways. This is because the start-up exemption, under which start-ups pay no transfer tax under certain conditions, is being widened.
The home value limit for eligibility rises to €510,000 in 2024. This provides opportunities for first-time buyers with an eye toward more expensive housing. The next step in changing the regulations is to increase the National Mortgage Guarantee (NHG) limit, which, among other things, makes buying an energy-efficient home more attractive.
Reduction in rent allowance contribution
Starting in 2024, many renters will notice a welcome change in their wallets. The monthly contribution for the rent allowance decreases by €34.67. For an entire year, this means a savings of €416.04.
This change gives tenants some breathing room and makes housing just a little more affordable.
The adjustment is not permanent; a gradual reversal takes place starting in 2025 and extending through 2029. Tenants can therefore take advantage of this reduction for the time being, but should be mindful of future adjustments.
As a result, it remains important for tenants to closely monitor developments around rent subsidies and contributions. On to the next change: adjustments in lending standards and housing affordability.
Adjustments in lending standards and housing affordability
With an eye toward a dynamic housing market, 2024 introduces significant changes to the lending standards that homebuyers need to know, while housing affordability is also getting a boost from new measures.
Changes to mortgage lending standards
Starting Jan. 1, 2024, the rules for getting a mortgage will be different. The new lending standards take more account of your current financial situation. This means that if you have student debt, the bank will look at what you are paying now, not what you still have to repay in total.
This will give you a fairer idea of how much you can borrow.
For singles, there is also good news! They will soon be able to borrow more money for their dream home than they can now. This is because the maximum allowable loan amount increases. Also, increasing the affordability limit to €390,000 matches the increase in the consumer price index.
These adjustments will make it easier to find a suitable mortgage and increase housing affordability. These steps are an important part of the plan to make the housing market more accessible.
Increasing the affordability limit for a home
In addition to the adjustments to mortgage lending standards, another important step has been taken to give homebuyers more breathing room. This is because the affordability limit for a home is going up.
This means that houses worth up to €390,000 are now within reach of more buyers. Previously, this limit was at €355,000, but rising house prices necessitated an adjustment.
This increase will make it easier for first-time buyers and those moving on to find suitable housing in a tight market. It is a direct response to the desire to make the housing market more accessible and stimulate construction projects.
In view of the government’s goal of building substantial new housing by 2030, this move is an encouraging sign. This will give the realization of the ambitious housing plans an extra push.
In 2024, we face numerous innovations that affect our environment and finances. Citizens and businesses face changed rules around living, building and borrowing.
These changes provide opportunities for first-time home buyers and bring greater clarity to the building code. Everyone would do well to prepare now for the coming changes.
So be sure to stay informed and ready for a new year full of opportunities!