OREANDA-NEWS. Fitch Ratings says in a new report that the number of properties sold in the Netherlands in December 2014 increased to a record high, attributable to the expiry of a temporary exemption in the gift tax framework; tightening of NHG criteria; and stringent Nibud standards becoming effective from 1 January 2015. These have also had an impact on prepayments in Fitch's portfolio of RMBS transactions.

Fitch also observed that the early- and late-stage arrears across RMBS transactions have fallen again in the first two months of 2015. The agency expects the performance of Dutch borrowers to lag behind the country's gradual economic recovery. As a result, we do not expect late-stage arrears to decline significantly in 1H15.

Home prices have picked up for the third consecutive quarter. At end-2014, home prices increased 1.5% year-on-year. Fitch expects the housing market to continue to recover slowly in 2015, supported by falling mortgage rates and decreasing unemployment.

Fitch's 'Mortgage Market Index - Netherlands' is part of the agency's quarterly series of index reports. It includes information on the performance of residential mortgages, predominantly from RMBS transactions, but also those held on bank balance sheets. The report sets the housing market against the macroeconomic background and provides commentary on the emerging trends. The report is available at www.fitchratings.com or by clicking on the link above.