Amsterdam - The major organizations active in the Dutch residential real estate market want the government to take extra measures to boost home sales, Dutch media reported on Thursday.

The organizations sent a letter to Minister of Residential and Urban Affairs Eberhard van der Laan (Labour) requesting special measures to boost the home market.

On Wednesday the Central Bureau of Statistics said the number of home sales in November dropped by more than 50 per cent compared with the same month last year.

The signatories to the letter, representing Dutch real estate brokers, home owners, renters, home building companies, as well as residential rental home corporations, want the government to guarantee mortgages for homes of up to 350,000 euros (455,840 dollars).

Today, Dutch nationals who purchase a home of up to 265,000 euros, can apply for special insurance which guarantees the mortgage will be paid if - under certain circumstances - the owners can no longer meet their financial obligations.

The insurance, which has existed for many years, was originally made to help low-income and young people who want to buy a home.

Earlier this week a parliamentary majority also requested the government to expand the national mortgage insurance legislation to include homes for up to 350,000 euros.

Rental home corporations own most of the rent-controlled homes in the Netherlands. A majority of Dutch nationals live in rent-controlled homes owned by such corporations.

The letter's signatories fear the long-term economic damage if the government does not intervene in the residential real estate market.

Among others, they expect a substantial price drop and a standstill in home building development.

Also on Thursday, publisher of real estate market statistics Bouwkennis, released a study saying that 12 per cent of Dutch nationals who have plans to move in the next five years, have postponed their plans indefinitely due to the financial crisis.

Among homeowners, 16 per cent say they will not move right now. According to the study, Dutch consumers fear their home will not be sold. Others think residential real estate prices will drop. (dpa)