Dutch house prices fell by 4pc in 2011

House prices fell by an average of 4% last year, the Dutch estate agents organisation NVM said on Thursday.

In total, 118,000 properties changed hands, a drop of 7% on 2010. The drop in sales in the fourth quarter was 13%, compared with the same period in 2010, the NVM said.

The organization expects prices to drop by a further 5% this year.

Tax cut The government's decision to cut the tax paid on property transactions from 6% to 2% of the value has not boosted the housing market as hoped, property experts told the Telegraaf.

Source: DutchNews.NL