Quarterly update: Q2 2021 Dutch housing and mortgage market

With this quarterly update of the second quarter of 2021 we inform you about important developments in the Dutch housing and mortgage market.

House price development recorded a record growth

During the second quarter of 2021, Dutch house price development has accelerated and experienced a record growth of 13.0% (YoY). Even though this is one of the largest growth rates since the beginning of the century, the same trend is seen all over the world. A recovery in consumer confidence, the continuing low-interest environment and very thin supply have been drivers of this price increase.

Economy crawled out of the Covid-19 depths

Strengthened by one of the most comprehensive recovery and support packages in Europe, the Dutch economy crawled out of the Covid-19 depths. However, even though most adults have been vaccinated, initial restrictions have been loosened and the economy is slowly recovering, the Dutch government decided to extend support measures to both households and companies until at least September 2021.

Housing market indicator remained continuously high

In line with signs of economic recovery consumer confidence has returned to pre-pandemic values. Also the housing market confidence indicator has remained at a continuously high level since the start of 2021, indicating a strong demand from house buyers. The structural housing shortage, low supply of properties for sale and the historically low mortgages rates all provided strong impetus to an acceleration in house prices. 

Housing market indicator remained continuously high

Transaction volumes remain high

With almost 53.000 houses sold in Q2 2021, transaction volumes remain high. Meanwhile, the number of houses for sale is extremely low with only  ̴15,500 houses for sale in the second quarter. This is the lowest number since records began in 1995. 

Mortgage origination volumes remain at a structural high level

With new origination volume of €37.5 billion in the second quarter (€39.8bn in Q1 2021), mortgage origination volumes remained at a structural high level as well. Mortgage spreads have consequently tightened since Q3 2020 to the lower end of what is observed in the last three years. However, during the second quarter spreads stabilized and improved gradually. On a relative value basis Dutch mortgages nonetheless continue to appeal to many lenders and investors, judging the continued high availability of liquidity for the asset class. 

Mortgage origination volumes remain at a structural high level

Market share increased for institutionally funded mortgage lenders

In Q2 2021 the 3 large domestic banks (Rabobank, ING and ABN AMRO) lost some of their market share compared to Q1 2021 (-4.1%). On the other side, institutionally funded mortgage lenders increased their market share (+2.3%). 

Download the quarterly update

On this page you can read a summary of the quarterly update. To read the full update please download the quarterly update Q2 2021 (PDF).

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Summary
  • Dutch house price development recorded a record growth

  • The Dutch economy crawled out of the Covid-19 depths

  • Housing market indicator remained continuously high

  • Transaction volumes remain high

  • Mortgage origination volumes remain at a structural high level

  • Market share increased for institutionally funded mortgage lenders

Download the quarterly update Q2 2021 (PDF)