One in five Homeowners in the Netherlands cannot afford “sustainable” improvements to their homes

2022-04-30 0 By

For one in five homeowners, making their homes more sustainable is unaffordable.Dutch daily Trouw reported based on a detailed analysis of 4.3 million homeowners by Dutch Bank DNB (De Nederlandsche Bank).According to DNB, these homeowners are unlikely to borrow extra money without enough savings.This mainly involves homeowners hardest hit by high energy prices, people with poorly insulated homes and relatively low incomes.According to DNB, the current sustainability subsidy program is not a good solution for this group.The cabinet wants to take 1.5 million homes off gas by 2030, which means investing in extra insulation and heat pumps.According to DNB, the average renovation cost about 24,000 euros per house — 34,000 euros for a detached house and 14,000 euros for a family home in an apartment.About 21 percent of homeowners simply can’t afford it, according to the analysis, which looked at income, assets, mortgages and living conditions.According to DNB, almost 90 percent of groups that cannot afford such sustainability measures tend to live in houses with energy labels C or lower, where a lot of home insulation still needs to be done.The solution?If the loan is used for sustainable development, the bank will provide additional borrowing room, but according to DNB, this is not a good solution for low-income homeowners who will have problems with their payments.DNB is also not keen on subsidy schemes.Trouw reports that, according to studies by the Dutch Court of Auditors and the Central Planning Agency, these schemes are not always equally effective.For example, these allowances are sometimes paid only after the investment has been completed, or only for major sustainable development investment retrofits.With no solution in place, DNB board member Olaf Sleijpen told the newspaper, “It’s important to have a clear idea who needs the most attention.”