The Dutch Authority for the Financial Markets (AFM) has published a sector report and underlying research on whether foundation repair costs can be financed responsibly by private homeowners, warning that delayed repairs can increase costs, depress property values and raise residual debt risks. The AFM argues that foundation risks should be identified earlier and that repair costs need to be borne in a financially sustainable way, given that the damage is not insurable and owners generally must pay themselves. The AFM estimates that around 500,000 homeowners have vulnerable foundations and that more than 120,000 face necessary repairs, with a total repair task of around EUR 11 billion. Typical repair costs are estimated at EUR 54,000 (EUR 92,000 on average); more than 75,000 owners cannot pay from available resources (around EUR 6 billion), and for more than 25,000 owners borrowing appears not responsible, leaving about EUR 3 billion of the total task seemingly not financeable. To address this, the AFM sets out four action areas for the financial sector and other stakeholders: improving access to property-specific and reliable foundation risk information; ensuring standardized foundation-risk information is available during the search, purchase, valuation and financing phases; assessing whether financing options can be used more effectively or strengthened; and exploring additional measures to reduce the remaining financing shortfall. The AFM plans to engage actively with stakeholders to develop solutions and highlights the need to keep attention on longer-term foundation risks, including preventive measures such as groundwater management.
Dutch Authority for the Financial Markets 2026-04-13
Dutch Authority for the Financial Markets publishes research on EUR 11 billion foundation repairs and calls for responsible financing solutions
The Dutch Authority for the Financial Markets has published a sector report finding that around 500,000 homeowners face vulnerable foundations, with necessary repairs for more than 120,000 properties amounting to an estimated EUR 11 billion, of which about EUR 3 billion appears not financeable. The authority calls for improved and standardised foundation-risk information, more effective use and potential strengthening of financing options, and additional measures to address the financing shortfall. It will engage with stakeholders on solutions and stresses the importance of longer-term and preventive measures, including groundwater management.