Netherlands a ‘cautionary tale’ for Coalition’s mortgage deduction scheme, expert warns

In countries such as the Netherlands (pictured) where tax-deductible mortgage schemes have been introduced, housing has become more unaffordable, Cody Hochstenbach, an associate professor in urban geography at the University of Amsterdam, says. Photograph: Ian Goodrick/Alamy

At the Coalition’s election campaign launch, weeks out from polling day, Peter Dutton announced the centrepiece of his affordable housing plan – making mortgages tax deductible for some first home buyers.

Unlike other housing measures announced during the campaign by the major parties, the deduction scheme had the potential to be an eye-catching policy that could sway voters towards the Coalition on a central election issue.