Inheritances are not a law of nature - the government can intervene and thus make the housing market fairer
An analysis earlier this year on the influence of large inheritances on house prices left little to the imagination (FD, July 5). We are on the cusp of a quiet power shift in the housing market. Not by big business or foreign investors – but by our own parents. Or rather: by their inheritances. Baby boomers with a paid-off house are thus proving to be the new real estate engine.
Hundreds of billions in wealth are being left behind. This money, largely "locked up in bricks and mortar," is increasingly flowing to a generation already in the housing market—or just a little nudge into it. First-time buyers without wealthy parents are missing out, while house prices continue to rise. And although the FD article notes that the jubilee bonus has been abolished, the underlying mechanism remains proudly intact: wealth breeds wealth.
While the jubilee gift may be gone, family mortgages and informal gifts are thriving. The tax treatment of intergenerational wealth transfers remains lenient—much lenient than in neighboring countries. This is odd, as it structurally reinforces inequality of opportunity. Why should two young first-time buyers with the same income experience such different outcomes in the housing market simply because one inherits assets and the other doesn't?
Inheritance tax could therefore be more progressive, with higher rates for large inheritances. Furthermore, there needs to be better oversight of family mortgages and interest-refund schemes. If policy rewards the transfer of wealth, it unintentionally reinforces the price-raising effect on the housing market.
Establish a system where we exempt people aged 65 and over from transfer tax when selling their home for a smaller, more suitable one. Or provide a relocation subsidy for seniors who free up a family home for young families. Mobility is a crucial element in a healthy housing market.
Transparency in the bidding process is also essential. Open bidding registers, as once announced by Housing Minister Hugo de Jonge, should be mandatory. This way, not only the highest bidder but also the most honest bidder gets a chance.
This isn't a plea for mere redistribution. The core remains that we're structurally building too few homes. But what we build is just as important as how many. Affordable homes for sale and mid-range rental housing must be prioritized. It's unsustainable that new construction projects are emerging that primarily attract investors or those moving up the housing ladder. Young people without wealthy parents deserve a place too.
The threat of an "inheritance-driven housing market" demands political courage. Not to punish parents for thrift, but to ensure that your background doesn't determine your future.
This article previously appeared in the Financieele Dagblad: https://fd.nl/opinie/1580791/erfenissen-zijn-geen-natuurwet-de-overheid-kan-ingrepen-en-zo-de-woningmarkt-eerlijker-maken
Hundreds of billions in wealth are being left behind. This money, largely "locked up in bricks and mortar," is increasingly flowing to a generation already in the housing market—or just a little nudge into it. First-time buyers without wealthy parents are missing out, while house prices continue to rise. And although the FD article notes that the jubilee bonus has been abolished, the underlying mechanism remains proudly intact: wealth breeds wealth.
Greater wealth inequality
The fact that this development is underway doesn't mean we should passively accept it. Legacies aren't a law of nature. If politicians and the government stand idly by, wealth inequality will continue to rise – but we can turn the tide. Therefore, four policy directions we should discuss further in 2026.While the jubilee gift may be gone, family mortgages and informal gifts are thriving. The tax treatment of intergenerational wealth transfers remains lenient—much lenient than in neighboring countries. This is odd, as it structurally reinforces inequality of opportunity. Why should two young first-time buyers with the same income experience such different outcomes in the housing market simply because one inherits assets and the other doesn't?
Inheritance tax could therefore be more progressive, with higher rates for large inheritances. Furthermore, there needs to be better oversight of family mortgages and interest-refund schemes. If policy rewards the transfer of wealth, it unintentionally reinforces the price-raising effect on the housing market.
Support flow
In addition, seniors own a lot of living space. They are often attached to their homes, but are penalized by tax if they choose to downsize. A senior who moves to an apartment pays property transfer tax, moving costs, and often sacrifices living comfort. Why shouldn't we actively support this group in moving up?Establish a system where we exempt people aged 65 and over from transfer tax when selling their home for a smaller, more suitable one. Or provide a relocation subsidy for seniors who free up a family home for young families. Mobility is a crucial element in a healthy housing market.
Political courage needed
The current practice – whoever brings the most money wins – is a recipe for unequal opportunities. The government should encourage first-time buyers with limited capital to gain access to the homeownership market. For example, through starter loans, jointly guaranteed by municipalities and the national government. Or through a mandatory owner-occupancy requirement, where homes may only be sold to buyers without other real estate assets.Transparency in the bidding process is also essential. Open bidding registers, as once announced by Housing Minister Hugo de Jonge, should be mandatory. This way, not only the highest bidder but also the most honest bidder gets a chance.
This isn't a plea for mere redistribution. The core remains that we're structurally building too few homes. But what we build is just as important as how many. Affordable homes for sale and mid-range rental housing must be prioritized. It's unsustainable that new construction projects are emerging that primarily attract investors or those moving up the housing ladder. Young people without wealthy parents deserve a place too.
The threat of an "inheritance-driven housing market" demands political courage. Not to punish parents for thrift, but to ensure that your background doesn't determine your future.
This article previously appeared in the Financieele Dagblad: https://fd.nl/opinie/1580791/erfenissen-zijn-geen-natuurwet-de-overheid-kan-ingrepen-en-zo-de-woningmarkt-eerlijker-maken
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