Could the Dutch Poll Result Be Good for Housing?

Could the Dutch Poll Result Be Good for Housing?

The boom in housing has been spurred by easy credit and favorable tax breaks for homeowners. Lower disposable income, changes in tax deductibility has led to a steep decline in prices.

Since 2008, house prices have fallen some 15%. Rabobank analysts expect Dutch house prices to drop by some 5% in 2012, with a further 4% decline seen for 2014.

Elco Brinkman of the Dutch builders association told CNBC that the election outcome should be good for housing market: "Homeowners worried about purchasing power and what they need is new trust and new activity. The new government may reflect the situation".

More specifically, homebuyers are waiting to get more clarity on how the new coalition government will deal with the deductibility on mortgage interest.

Source: http://www.cnbc.com/id/49016099