Many people in the Netherlands cannot find suitable housing, including in the province of North Holland.
Research by the Interprovincial Consultation (IPO) among the 12 provinces shows that the implementation of many plans is delayed, with nitrogen and grid congestion as the biggest bottlenecks. This corresponds with the findings of the province of North Holland earlier this year, which served as our input for the IPO report.
Nitrogen and Grid Congestion
Both in North Holland and at the national level, nitrogen and grid congestion are the main bottlenecks for housing construction. In North Holland, as many as 99.5 percent of housing projects deal with nitrogen. The closer the new homes are to nitrogen-sensitive natural areas, the more complicated it is to obtain a nature permit. Over 41 percent of the planned homes are located within 5 kilometers of nitrogen-sensitive natural areas.
Grid congestion can also cause delays for almost every housing project. There is insufficient capacity on the power grid, and there is no short-term solution. This results in very long lead times for housing construction. Not every project reports grid congestion as a delay reason because the long lead times are already included in planning: grid congestion is therefore often underestimated. There are alternative ways to supply homes with electricity, for example by using a battery. However, this is not always possible due to current laws and regulations. Therefore, much can be gained by improving these rules and procedures.
Other Bottlenecks
Besides nitrogen and grid congestion, two other bottlenecks emerge in both studies. If the costs of a housing project are higher than the revenues, there are unprofitable peaks and construction is delayed or does not take place. The IPO report shows that this often concerns €10,000 to €35,000 per home and affects more than 50% of homes. The province and the national government help with subsidies, but more is needed.
Other bottlenecks are the limited investment capacity of housing corporations and the shortage of manpower and expertise at municipalities. Think of urban planners and project managers. Especially small municipalities suffer from this. To assist municipalities, the province has set up a Housing Acceleration Desk. This team consists of experienced area developers, project managers, and specialists who support municipalities. Additionally, the province wants to establish a provincial or regional project office. By hiring experts, municipalities can be relieved in managing and preparing projects.
Working Together on Solutions
The province of North Holland sees that good cooperation already exists with municipalities and the national government to remove bottlenecks and further accelerate housing construction. The IPO research emphasizes the importance of this cooperation.
Download: IPO Research: Provinces: “Construction of at least half a million homes at risk” Opens an external link
