Jan-Paul Hendriks (Novalink), Patricia van Barneveld (Hypocasso) and Will Keuren (the Homeownership Guarantee Fund in the Netherlands) talk about how they deal with arrears and preventive management. During these interviews, one thing immediately becomes clear: what really helps – and prevents anything worse – is personal contact!
Since 2011, a number of major shifts took place among providers in the Dutch mortgage market. During this period, for instance, the percentage of mortgage loans issued by the country’s three major banks (ING, Rabobank and ABN Amro) decreased from some 70% to around 50%. The market share of institutional investors investing in the mortgage market via so-called ‘regiepartijen’ rose considerably in the same period as well, achieving an annual volume of approximately €13 billion. Regiepartijen are non-banks that offer institutional investors access to the Dutch mortgage market via lending platforms. So how can these shifts be explained?
‘A shortage in the mid-priced rental sector is creating a huge imbalance in our housing supply, especially in the larger cities. And this means an increasingly large group of people who are missing out on housing opportunities. This imbalance needs to be corrected. That’s something we can all agree on. It’s appalling that a shortage like this has developed over the past period. And that’s why all of us now have an important task on our hands. Together, we have to ensure that this problem gets solved as quickly as possible.’ This is the opinion held by Rob van Gijzel, 63, who has been serving since 1 January 2017 as Chairman of the ‘Joint Discussion Group for the Mid-Priced Rental Segment’.
'We are the bridge between the institutional market that wants to invest in mortgages and consumers who are eager to secure a mortgage', state Jeroen van Hessen, Managing Partner, and Marieke Hut, Director of Business Development at the Dutch Mortgage Funding Company (DMFCO). 'The two need to be brought together. Our goal is to find the right balance.'
Investment Manager Patrizia has been active in the Dutch housing market since 2014. This German investor has previously acquired a substantial portfolio from Dutch housing corporation Vestia. Peter Helfrich, Managing Director of the Dutch branch of Patrizia, has set his sights on the Dutch housing market.
‘Demand for housing is expected to increase steadily’, says Stef Blok, former Minister for Housing and the Central Government Sector. ‘This increase is driven by fundamental demographic changes, e.g. strong population growth and an increasing number of single-person households’.
The National Mortgage Guarantee (Nationale Hypotheek Garantie, or NHG) is provided by the Homeownership Guarantee fund (Waarborgfonds Eigen Woningen, or WEW) and acts as a government-backed guarantee fund. For homeowners, NHG acts as a safety net by protecting households from the risk of unemployment, disability, divorce and death of a partner. Arjen Gielen, CEO of the WEW explains the implications of NHG for mortgage providers.