Date: 16 December 2021

The end of the year is in sight! The housing market has developed enormously in the past year. House prices have risen sharply, also in Amsterdam. In one year, the square metre prices have risen by 17%! Partly due to this increase, we can expect a number of changes in the housing market in 2022. We zoom in on the changes and what they mean for you.

1. Compulsory self-employment in Amsterdam

As of 1 January 2021, municipalities can introduce their own rules regarding buy-out protection. The municipality of Amsterdam wants to start this as soon as possible. It wants to introduce an obligation of self-occupation for houses with a WOZ value of up to € 512,000. This obligation will apply for the first four years after the house has been purchased. The obligation of owner-occupation in Amsterdam is used against investors and is intended to give house hunters more opportunities. Permits to rent out homes are only granted in special cases.

2. Less mortgage interest deduction as of 1 January

The maximum mortgage interest deduction will be reduced from 43% to 40% as of 1 January 2022. However, this does not apply to everyone, but to annual incomes above € 69,398.

3. NHG from € 325,000 to € 355,000

The National Mortgage Guarantee (NHG) will increase in 2022 from € 325,000 to € 355,000. A mortgage with NHG is meant to reduce the financial risks for buyers. The reason for the increase is because of the house prices that have risen so tremendously in the past year. It will also become cheaper to take out an NHG mortgage. This goes from 0.70% to 0.60%.

4. Changes in transfer tax exemption

Since this year, buyers under the age of 35 no longer have to pay transfer tax (ovb) when buying their first home. Buyers over 35 years of age who are going to live in the house themselves pay 2%. Investors pay 8%. As of 1 January, the transfer tax will become even fairer. Should buyers abandon the purchase due to unforeseen circumstances? Then the cabinet arranges that they do not automatically pay the 8% rate before the transfer.

As of January 2022, housing corporations or project developers will no longer have to pay an 8% transfer tax for VoV residences. These are homes that housing corporations and project developers sell under conditions with a considerably high discount. VoV homes are sold to first-time buyers or people with a lower income. The purpose of this measure is to keep the houses affordable for a private buyer.

5. In 2022, the owner-occupied home requirement decreases

As of 2022, the notional amount for homes up to € 1,110,000 will drop from 0.50% to 0.45%. This means that homeowners will be able to deduct more mortgage interest from their taxes.

6. Amsterdam at Home expects these developments in 2022

Based on the developments we have seen in recent years, we expect house prices to rise by 10% in 2022. We also think that tightness will increase. In 2021, there were already fewer transactions than in 2020. We expect the number of transactions to be lower again in 2022. The market is locked in. People do want to move, but they cannot find the next (affordable) home that meets their needs. For this reason, fewer homes are being put up for sale.