Land Policy in Practice: A Tale of Two Dutch Cities

In the context of a spiraling housing crisis in the Netherlands, "Land Policy in Practice: A Tale of Two Dutch Cities" explores how local governments can regain control over land to address housing and environmental challenges. Published in the Green European Journal, the article features insights from two Dutch aldermen, Martijn Balster of The Hague and Rik Thijs of Eindhoven, who advocate for active land policies and increased municipal land ownership.

Both politicians emphasize the essential role of active land policy in steering urban development. Rik Thijs argues that local governments must actively manage land to tackle the climate and biodiversity crises and to ensure the availability of social housing. He notes that social housing creation is only feasible with proactive land management. Martijn Balster concurs, stating that many socially important projects do not generate profit, making it financially impossible for private landowners to build affordable housing. By owning and managing land, municipalities can impose requirements such as affordable housing development.

The discussion highlights the factors driving up land prices, primarily speculation. Thijs observes a shift in Eindhoven, with more investors from major cities like Amsterdam and Rotterdam entering the market, often leading to inflated prices. Balster supports this view, noting that foreign investors frequently seek high returns, complicating local efforts to provide affordable housing.

Thijs explains that Eindhoven has adopted an active land policy, prioritizing land acquisition and maintaining ownership. The municipality sells land primarily to housing corporations at reduced rates, enabling the construction of affordable homes. Additionally, they view leaseholds as tools for control rather than as revenue sources, allowing them to manage land use effectively.

In contrast, Balster describes The Hague's ongoing struggles to implement a similar strategy. While recent financial gains from selling a power plant have allowed for some land purchases, the city is exploring additional funding sources to enhance its land management capabilities.

Thijs discusses Eindhoven's strategic investment credit, which supports land acquisition while ensuring funds are recycled back into the municipal budget as land is developed. This approach allows for a sustainable investment cycle, incorporating funds for projects that align with environmental goals.

Balster provides an example from The Hague, where the municipality acquired a former hospital site to house vulnerable groups and potentially develop affordable housing. Thijs shares the Knoop XL project in Eindhoven, which encompasses 55 hectares for housing and offices, emphasizing the importance of municipal preferential rights in land sales.

Thijs also mentions the purchase of the Wielewaal estate for conversion into a public park, illustrating how land policy can align with environmental goals. This project faced internal debates on its intended use, highlighting the need for municipalities to advocate for social purposes in land development.

Both aldermen stress the necessity of utilizing tools like leaseholds more effectively. They propose a "plan income tax" to disincentivize land speculation and a vacancy tax to address underutilized properties.

The discussion concludes with a call for collaboration among local administrators to enhance land policy tools, emphasizing the need for municipalities to leverage their land instruments fully to create sustainable housing solutions.

This article was first published in Dutch in the Summer 2024 issue of De Helling and is republished with permission.