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PvdA wants to invest billions in construction and public housing

Published on 18-08-2020
Opposition party PvdA has made a proposal to invest more than 14 billion euros in housing and public housing. According to the Social Democrats, the substantial injection in the sector is necessary to support the economy during the current corona crisis.
 
The stimulus package for housing and public housing is part of a total package of 50 billion euros. This consists of emergency measures and more structural measures. For example, the PvdA advocates a Construction Fund for Housing (4 billion euros). 10,000 euros will be made available for each additional home that is built on top of the existing building plans and will be ready in 2025. The condition for this is that the rent is less than 730 euros per month, or the purchase price is less than 330,000 euros. In total, this should yield 400,000 extra homes.

Abolition of landlord levy

The lion's share of the investments in housing and public housing, 8 billion euros, goes according to the PvdA, to the abolition of the landlord levy. According to the Social Democrats, 100,000 affordable homes could have been built without the tax. By abolishing the levy before the end of the year, instead of pushing the topic on until after the 2021 elections, jobs for construction workers should be preserved.

Vital cities and towns

In addition, the PvdA wants an investment fund with 2 billion euros for vital cities and villages. The opposition party points out that shopping centers are under pressure, neighborhoods are deteriorating and more and more facilities are disappearing in shrinking areas. The PvdA is thinking of a similar fund to the former Urban Renewal Investment Budget.

Guarantee scheme construction

In addition to the structural investment, the sector is also reflected in the emergency package that the party has in mind to protect employment that is now threatened by corona. For example, the PvdA advocates a (temporary) abolition of the landlord levy and a guarantee scheme for new construction. Projected costs for these emergency measures: 4 billion euros.
 
Light rail in Randstad

Public housing is also indirectly reflected in the other structural investments advocated by the Social Democrats. EUR 4 billion has been booked to make 400,000 rental homes more sustainable. In addition, the PvdA is advocating 10 billion in investments in public transport, including a train connection from Amsterdam to Groningen via Lelystad, so that it becomes more attractive to live in the north. In the Randstad, a light rail connection must be established between the cities and villages, bearing in mind the metro.

WopkeWiebesFonds

The PvdA will finance some of the measures in the WopkeWiebesFonds. This fund was launched a year ago by Ministers Wopke Hoekstra (Finance) and Eric Wiebes (Economic Affairs). This should strengthen the earning capacity of the Dutch economy. Other measures are included in the counter-budget for 2021.
 
Source, www.vastgoedmarkt.nl 18th of august 2020