Groningen Expands Purchase Protection to Keep Homes Affordable
New measures aim to keep homes affordable and limit investor purchases may come into effect April 7
The municipality of Groningen is increasing the purchase protection limit from €355,000 to €430,000, aiming to make it harder for investors to buy homes solely for rental purposes. If the city council approves the proposal on March 26, the new rules will take effect on April 7.
Protecting Housing for Homebuyers
Under the updated regulation, anyone purchasing a home below the new price limit must live in the property for at least four years before renting it out. This measure, introduced in 2022, is part of the city's efforts to ease housing market pressure and give first-time buyers better opportunities.
“The housing market is extremely tight, making it challenging for people to buy their first home,” says Alderman Rik van Niejenhuis. “By increasing the purchase protection limit, we make it less attractive for investors to buy houses solely for rental, ensuring more homes remain available for buyers.”
Currently, two out of three homes in Groningen fall under this rule. The price cap is adjusted yearly to match middle-income mortgage affordability, making sure it stays relevant to market conditions.
Expanding Mid-Range Rental Protections
Alongside purchase protection, new mid-range rental rules will also take effect on April 7. These rules will prevent people with higher incomes from renting mid-priced homes, ensuring they remain accessible to middle-income residents. The regulation applies to future housing projects, not current rentals.
Stronger Housing Regulations
The updated housing ordinance also includes:
Administrative fines: Since January 2023, violations of the housing regulation can result in fines, with new guidelines explaining when penalties apply or can be reduced.
Tourist rental reporting: Homeowners must now report if they rent their property for short stays, adding another layer of oversight to Groningen’s housing market.
While some landlords are unhappy with the changes, the municipality remains focused on making housing fairer for all. “We understand concerns from property owners, but our priority is ensuring more people can find a home,” says Van Niejenhuis.
For more details on purchase protection and rental regulations, visit the municipal website.