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Bizarre prices for small rooms, trapped first-time buyers, driven-away middle incomes and more and more homeless people. It is clear that Amsterdam is facing a huge housing crisis. Amsterdam is popular and the demand for living space is high. Yet this serious housing crisis is not a natural outcome of Amsterdam's appeal: it is a result of political choices. Which affect not only Amsterdam, but the whole country and will be recognisable to other cities in Europe.

This is an opinion piece with contributions from: Melissa Koutouzis, Cody Hochstenbach, Maarten Wiedemeijer, Niels Jongerius, Gert Jan Bakker en Jeske Jongerius

Alderman Laurens Ivens and housing advocate Gert Jan Bakker will engage in a discussion about these questions in this live event on the 19th of May. Be there!

Housing shortage is nothing new. Today's explosion of housing and rental prices is. The current housing market is not a market for house hunters and sellers only: it is also a financial market with houses as investment objects. At the same time, more and more people have been made dependent on the market for their living space by politicians. The current housing crisis is characterised by an affordability problem and increased precarity of tenants and house hunters. Meanwhile, it’s homeowners and slumlords - including international property investors – who are benefitting financially.

With the rise of neoliberal policies since the 1980s, politics is increasingly focused on the interests of homeowners, disproportionately subsidising their capital development. At the same time, public housing has been eroded. The last three Rutte administrations have accelerated this development with the additional taxation and reduction of social rent, the further flexibilisation of occupancy rights in favour of slumlords and the abolition of the Ministry of Housing. The consequences? Among other things, a doubling of the number of homeless people and increasing inequality between tenants and homeowners. These are societal challenges that concern everyone. Housing shortage is not an individual problem: it is a matter for the collective.

The positive news is that if misguided policy choices have set us up, good measures can help us out. We have brought together a group of committed scientists, activists, housing experts and housing pioneers to provide specific recommendations at local, national and European levels. Taking the context of Amsterdam and the Netherlands as a starting point.

1. The local level

Amsterdam is growing and this requires we pay extra attention to what it is that we want to nurture as a city. The current trend shows a segregation, with lower and middle incomes increasingly being displaced and finding themselves in precarious housing situations. Financial value crowds out other values. Contrasts are increasing. Vulnerability is increasing. What would Amsterdam be without its colourful mix of people? Without public space for its community? Who will ensure social connectedness in the neighbourhoods, who will take care of the education needs of our children and the care for our elderly, who will nourish our green spaces, a thriving counter-culture, who will nurture budding intellectuality and vibrant creativity, if this trend continues?
This is why we suggest that the city:

A) Puts the focus on affordability, liveability and inclusiveness for the long term

The current objective of 80% affordable housing for middle and lower incomes for new build projects is positive. But also build in the mechanisms to keep it that way in the long run. Counteract social division; also focus on affordable housing in 'richer' neighbourhoods.

Put the needs of future and current local residents at the heart of building developments instead of maximising profits for land prices. Find "slow capital" instead of "fast money," with the intention of keeping the city liveable, affordable and inclusive in the long run.

B) Make Amsterdam a city for residents, not financiers

Accommodate people, not investors. Maintain plenty of room for initiatives with social added value and for neighbourhood and community spaces. Give residents and house hunters a say in decisions that concern them. Make starting a housing cooperative (a collective of residents realising their own living space) easier and accessible to various groups, with extra attention for social housing tenants.

C) Don't drop people in vulnerable situations

More and more people are finding themselves in insecure, temporary and unhealthy living situations. When people suddenly become homelessness, they are often on their own. Ensure suitable care and quick housing that offers respite while people work on options for moving on to a more permanent solution.

2. The national level

Housing is both an expression of and a building block for social inequality. In housing policies, it is now the market that takes centre stage, instead of the right to housing and low-cost social housing. As a result, more and more people are being excluded, with a doubling in homelessness as an extreme consequence. Middle incomes are increasingly falling through the cracks. Meanwhile, homeowners are experiencing an unprecedented and untaxed increase in wealth. We can and must turn this tide.

A) Ensure broad public housing schemes for low and middle incomes

It is essential that the landlord levy for housing associations is abolished, so make room for substantial additional construction while current social housing stocks are maintained and preserved. In order to give social housing an extra boost, additional investment by the state are desirable. In addition, raise the income threshold for social rents, so that middle incomes can also rent affordably.

B) Stop the subsidisation and untaxed profits from home ownership

Accelerated abolition of the mortgage interest deduction should be given priority. Wealth must be taxed more and income from work less heavily. Ensure that homes also count as taxable capital. And that income from commercial rentals is included in income tax returns. Help house hunters by creating adequate supply and countering unfair competition from investors instead of simply raising their spending limit (or debt), as this only pushes up prices.

C) Regulate the 'free rental sector' 

The Netherlands has a good points system to determine fair rents; extend this to all rental properties and decouple rents from the property value (WOZ-waarde). Avoid 'buy to let'; both by excluding this from the buyers’ market and by regulating the rental market. Instead, promote that these money flows are redirected towards affordable new builds. Abolish flexible rental contracts, they only serve the slumlords. Mandate permits for rental, which landlords may lose in case of abuses.

D) Central direction and transparency

This approach requires central direction, insight and transparency. Therefore, bring back a Ministry of Housing and finance and stimulate research into housing, liveability and the development of a housing policy and the housing market.

3. European level

European regulations promote market forces over housing law. There is a lack of policies and laws to enforce the housing responsibilities of national governments. The financialisation of the housing market is an international problem. These are things in which Europe can make adjustments.

A) Right of residence over the right to profit

Create mechanisms and regulations to enforce people's housing security and states' responsibility for public housing. Currently, property is better protected than the right to housing liveability.

B) Provide housing policy guidelines that combat inequality

Housing and socioeconomic inequality are closely linked. National policies should aim to combat, rather than reinforce, substantial inequality. Europe should test national policies on the basis of this principle. For example, disproportionate subsidisation of owner-occupied dwellings and the tax disadvantage of social rent might be discouraged.

C) Promote transparency and cooperation

Fund and stimulate research into housing, liveability and the development of housing policy, public housing and the housing market. Provide insight into housing costs and profits and the impact on (in)equality to facilitate early adjustment. Encourage accessible knowledge exchange between cities and countries, as well as information about unethical parties by keeping a blacklist of 'bad investors'.

With these suggestions we aim to provide input for Amsterdam as well as for entering into a broad coalition of cities with a joint action agenda. In this way, Cities for Change hopes to promote a first step.

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This agenda has been drawn up thanks to personal contributions from Melissa Koutouzis (residential activist & Cities for Change), Cody Hochstenbach (researcher urban geography UvA), Gert Jan Bakker (consultant at stichting !Woon), Maarten Wiedemeijer (policy officer at the Woonbond), Niels Jongerius (housing pioneer at De Nieuwe Meent cooperative) and Jeske Jongerius (residential activist & anthropologist).