That the housing market in Groningen is overcrowded is nothing new. Due to the tight market, you might have to pay more for a home than your budget allows. A first-time buyer loan (starterslening) can help you. Groningen is the city of young people, but for the generation that wants to build a life here after studying, the front door to the Groningen housing market remains firmly locked. While seven out of ten surrounding municipalities step up with tens of thousands of euros, the municipality of Groningen chooses not to offer the first-time buyer loan. Student en Stad would like to see this change, and we are advocating for the reintroduction of the Starterslening.
Young people and first-time buyers make Groningen even more vibrant, but we see how difficult it is for this generation to actually live here. The municipality of Groningen is trying to do something about it—projects like Koopgarant are a step in the right direction, but the supply is too limited and forces first-time buyers into specific new-build locations. The classic first-time buyer loan would, in fact, be the key to the existing housing market. Reintroducing the first-time buyer loan is an investment in the entire city. Every first-time buyer who purchases an apartment with a little boost leaves behind a (social) rental home. This creates the much-needed flow from which the whole city also benefits. Furthermore, the scheme is specifically tailored to young professionals, as they do not have to pay interest and repayments during the first three years. This is crucial for first-time buyers at the start of their careers, when income is often still uncertain or expected to grow significantly in the future. As a result, first-time buyers can responsibly build a stable living foundation without immediately being faced with maximum monthly costs.
A frequently heard argument against the loan is that it would drive up prices, because these first-time buyers now have more to spend. However, the fear of price increases is simply unfounded. Independent research by the Land Registry (Kadaster) shows that there is no direct price-inflating effect. First-time buyers with a loan do not bid more than others for a comparable home. In fact, they actually buy homes that are, on average, €25,000 cheaper than those bought by first-time buyers without a loan. The loan does not drive up the price; it enables entry for the 30% of young people who would otherwise be left out. And the numbers show that it works: the loan helps young people buy at an average age of 27 instead of 31. That is precisely the phase in which they take their first steps into the labor market and strengthen their network in Groningen. Furthermore, these concerns do not outweigh the risk of losing our young professionals to neighboring municipalities such as Het Hogeland or Midden-Groningen, where they do offer these first-time buyer loans.
A city that profiles itself as the ultimate place for young talent cannot afford to leave that same group out in the cold at the first major step in their lives. It is time for the municipality of Groningen to take responsibility for the livelihood security of its first-time buyers. Do not just give young people a diploma, but also a fair chance at a home. We make the City, but we have to be able to keep living here!
