This week the municipality of The Hague has announced plans for a special loan system designed entirely for potential house-buyers.

About the loan

The new scheme means that those wanting to purchase property will be eligible for a grant to cover specific costs, such as renovation and maintenance.

These are costs commonly incurred in the first year of ownership, and candidates will not need to start repaying the loan for three years.

The city's municipality has set aside 6,3 million euros for the scheme. This will allow for a grant of 35.000 euros to be given to a total of 180 applicants.

The scheme was launched by the city's Deputy Mayor Marnix Norder, who is also head of urban development and public housing in The Hague.

It will come into force this autumn, complementing an already impressive set of incentives for property-owners in The Hague.

The municipality has previously demonstrated its commitment to improving the housing market by increasing the amount of student housing, improving the energy efficiency of properties and removing red tape for those wanting to make renovations.

Benefits

The scheme is designed to kick-start The Hague's housing market, by allowing more people to get onto the property ladder.

While it is true that there are many things to consider when buying a house in the Netherlands, this loan offers the possibility of removing some of the financial deterrents.

Importantly, buyers might be more inclined to purchase properties which aren't in perfect condition, as they have the option of "fixing" them upon purchase.

Officials behind the scheme are hoping to increase the sale of low-cost housing (valued at 200.000 euros or less) by 10 per cent.

Norder supports the new system primarily because it will boost the number of house-buyers in the city. He also hopes, however, that it will increase the quality of low-cost housing, thereby benefitting neighbourhoods as a whole.

Source: The Hague