Region

Jurisdiction

Regulator

2026-04-13

Vulnerable Homeowner: Ensure Responsible Financing for Foundation Repairs

The AFM warns that 120,000 Dutch homeowners face foundation repairs costing €11 billion, with 25,000 unable to responsibly secure loans, and calls on the financial sector and stakeholders to collectively address the crisis. The regulator mandates four concrete actions: ensuring accessible, property-specific foundation risk data; standardizing risk disclosure during property transactions and mortgage assessments; exploring enhanced financing mechanisms with lenders and policymakers; and investigating supplementary measures to close the €3 billion funding gap. Postponing repairs risks severe cost escalation, property devaluation, and residual debt, making timely intervention and responsible financing essential to protect vulnerable homeowners.

Netherlands

Autoriteit Financiele Markten

News

13/04/26

Half a million homeowners have a vulnerable foundation. For more than 120,000 of them, repair is necessary – a total challenge of €11 billion. Most cannot directly pay their own repair costs; for more than 25,000 owners, borrowing does not appear responsible, according to our research. Foundation repairs must be financed responsibly, the AFM believes. This is to keep the financial risks for owners manageable. We provide four concrete action points for addressing the foundation issue.

In short

Postponing foundation repairs can lead to higher repair costs, property value depreciation, and residual debt risks

€11 billion repair challenge – borne by 120,000 homeowners with the highest foundation risks

25,000 owners appear unable to responsibly borrow for foundation repair costs

4 actions for the financial sector and stakeholders to timely signal foundation risks and finance repairs responsibly

We will actively engage with stakeholders to find solutions

Postponing foundation repairs can lead to higher repair costs, property value depreciation, and residual debt risks

Foundation problems entail substantial financial risks for private homeowners. Damage is not insurable, and owners must in principle bear the costs of foundation repairs themselves. Postponing repairs can worsen the problems and lead to higher repair costs, with a possible risk of residual debt upon sale of the property. Foundation problems must therefore be detected and addressed in a timely manner, the AFM believes. Private homeowners must also be able to bear the costs of foundation repairs in a responsible manner.

€11 billion repair challenge - borne by 120,000 homeowners with the highest foundation risks

More than 120,000 homeowners face such severe foundation problems that repair is necessary. The total foundation repair challenge for this group is estimated at €11 billion, according to our research 'Foundation Repair: Financiable for Homeowners?'. This research is the first to focus on the foundation issue at the level of the private homeowner. The research thus provides insight into both the total and individual financing challenge in the event of foundation problems.

25,000 homeowners appear unable to responsibly borrow for foundation repair costs

For the 'typical owner', repair costs are €54,000, but on average €92,000. More than 75,000 homeowners cannot directly pay the costs from their financial means. This means a total of €6 billion in repair costs cannot be paid directly. Taking out a loan is then an option, but for more than 25,000 homeowners this does not appear responsible. This means that €3 billion of the total €11 billion challenge does not appear to be financeable.

Four actions for the financial sector and stakeholders to timely signal foundation risks and responsibly finance foundation repairs

Apart from the financing challenge, the foundation issue is so complex that it is not realistic to leave the responsibility for foundation repairs entirely to the individual homeowner. Collective action is therefore necessary. The AFM calls on the financial sector and stakeholders to work together from their respective roles and responsibilities to solve the foundation issue and the financing challenge. We see four action points:

Ensure easily accessible, property-specific, and reliable information about foundation risks for homeowners. We see a role here for the Ministry of the Interior and Kingdom Relations (BZK), municipalities, real estate agents, and housing platforms;

Ensure the availability of standardized foundation risk information during the orientation and purchase phase and the valuation and financing phase. We see a role here, for example, for BZK, the Dutch Association of Real Estate Appraisers (NRVT), real estate agents, and housing platforms;

Investigate to what extent financing options can be responsibly better utilized or strengthened. This can be done by parties such as mortgage lenders, the Dutch Banking Association (NVB), the National Mortgage Guarantee (NHG), and policymakers;

Investigate possible additional measures for a smaller financing shortfall. We see a role for mortgage lenders, the Sustainable Foundation Repair Fund, and policymakers.

We will actively engage with stakeholders to find solutions

With this research, we are explicitly placing the issue of financing foundation repairs on the societal agenda. From our responsibility as a supervisor, we will actively initiate dialogue with involved parties to find solutions. Furthermore, it is important to maintain attention for foundation risks that may arise in the longer term. With preventive measures such as groundwater management, (further) foundation problems can be prevented in the future.

Vulnerable Homeowner: Ensure Responsible Financing for Foundation Repairs

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