What Will Change in the Housing Market in 2024?

2024 promises some remarkable changes in the housing market, and we list the most important developments for you.

1. House Prices Back to Level 2022

According to RaboResearch, house prices will return to 2022 levels in 2024. After an expected fall of 2.8% in 2023, they predict a 4.5% rise in both 2024 and 2025. ING Research is slightly more positive and expects prices to average 4% higher by the end of 2024 than by the end of 2023.

2. More Lending Space and Amended Loan Standards

For 2024, the Ministry of Home Affairs has adjusted mortgage lending standards. Households will have more lending space to buy an energy-efficient home and make their own homes more sustainable. Single people with an annual income of at least €28,000 will also have the option to borrow more.

3. NHG Limit and Influence of Energy Labels

The cap for taking out a mortgage with National Mortgage Guarantee (NHG) has been raised to €435,000. For mortgage applications with energy-saving measures, the NHG limit is even set at €461,100. In addition, the energy label has more influence on the maximum mortgage: the more energy-efficient the house, the more borrowing space.

4. End of the Jubilee Donation and Rental Market Developments

Unfortunately, the 'jubelton' is over - the €100,000 tax-free gift for buying a home has been abolished. In the rental market, depreciation of rental properties is expected, partly due to increased interest rates and government measures. As a result, values are expected to fall by 5% by 2024.

5. Mortgage rates at Lowest Point

After a spectacular rise in 2022, mortgage rates look set to continue a downward trend in 2024. The most realistic scenario predicts an average 10-year fixed mortgage rate between 3.5% and 4%, and even towards 3% in an optimistic scenario.

6. Municipal Taxes and Rent increases

For homeowners, average municipal taxes and levies rise slightly, to €938 in 2024. In the free sector, landlords are allowed to raise rents by up to 5.5% from January.

With all these changes, it is clear that 2024 will be a year full of dynamism in the housing market. Whether you are a buyer, seller, or tenant, it is advisable to keep an eye on these developments and seek professional advice if necessary. The year ahead promises to be an interesting journey for everyone involved in real estate.

Do you have any questions or are you looking for an estate agent for guidance in selling or buying? We would love to get in touch with you.