De Nederlandsche Bank (DNB) states that due to tax benefits, buyers of houses for their own occupation usually have much lower housing costs that tenants. It also states that the gap will widen in the future, as rents continue to rise while expenses for buyers are hardly increasing, or not at all. The government will have to do something about the gap. As a result, living standards will benefit.
The government may, for example, narrow the gap by phasing out the mortgage interest tax relief faster or by increasing the notional rental value in stages. This increase will raise costs for homeowners. As an alternative, owner-occupied homes can gradually be moved to box 3. Homeowners will then pay tax on their assets in the house. They will then no longer enjoy any mortgage interest tax relief. The tax benefits for homeowners push up house prices far too high, according to DNB. If these tax benefits were to be cut back, rents would be expected to become more affordable as landlords would have to charge less rent to meet their profitability requirements.