The housing market crisis was further emphasised on Thursday by the publication of new figures showing just 1,100 new homes are being bought every month, compared with 4,000 before the economic crisis began.

The figures are 'dramatic', Nico Rietdijk, head of property developers association NVB told the Financieele Dagblad. At the beginning of last year, 2,500 new properties were sold on a monthly basis, Rietdijk said.

On Wednesday, the national statistics office CBS said local authorities granted 55,800 building permits for new properties last year, the lowest figure since 1953.

The special tax on house purchases – overdrachtsbelasting or conveyancing tax – is to be reduced from 6% to 2% for a year in an effort to boost the housing market.

Ministers agreed to cut the tax at Friday’s cabinet meeting, the last before the summer recess. The tax cut will be backdated to June 15.

According to the Telegraaf, the measure will save home buyers €8,000 on the cost of a €200,000 house. The tax raises €3.5bn for the treasury every year.

Real estate agents have welcomed the move, saying it will help more first time buyers take a step on the housing ladder.

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