Bloomberg News

Dutch Housing Bill May Not Pass in Current Form With No Majority

February 12, 2013

A Dutch government bill to revamp the country’s housing and mortgage market may not pass in its current form after Housing Minister Stef Blok struggled to get a majority of senators to support it.

“Talks with the Christian Democratic Party failed,” the ministry said in a statement. The government is in talks with political parties D66, the Christian Union and the SGP, it said. Richard Gielen, a ministry spokesman, couldn’t immediately be reached for comment.

The government plans to restrict tax deductions for mortgages of 30 years or less, while renters with an income of more than 43,000 euros ($58,000) may see their rates go up by as much as 5 percent. The government is also seeking to impose levies totaling 2 billion euros on housing corporations. The law needs to be passed before March 1 if the higher rents are to become effective July 1.

The housing plan is the first major test for Prime Minister Mark Rutte in the Senate, where his People’s Party for Freedom and Democracy lacks a majority. The Christian Democratic Party, which could help deliver a majority, opposes the plan as being too strict.

To contact the reporter on this story: Fred Pals in Amsterdam at fpals@bloomberg.net

To contact the editor responsible for this story: Andrew Blackman at ablackman@bloomberg.net


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