Increasingly less confidence in the housing market due to strict regulations and high interest rates

Consumer confidence in the housing market is declining due to rising interest rates, stricter lending rules, and increased construction costs. Peter Boelhouwer from TU Delft notes that this trend is particularly evident in the new construction sector, where buyers face long construction times and financial burdens. The number of new construction mortgages granted has dropped by 12% in the last quarter, marking a continuous decline. Geopolitical tensions and inflation are contributing to rising interest rates, further limiting buyers' borrowing capacity, especially for first-time buyers. Despite slower price increases, bidding wars persist, particularly for desirable properties.