With its program, the government affects the reality where the level of construction is low, even historically low in the case of small house construction. The state loses tax revenues and lower employment causes direct and indirect costs for the state and municipalities and reduces private consumption. By zoning enough lots and building more, you can also influence the prices of lots and apartments, which, especially in the capital region, have crossed the pain threshold.
Many items in the government program require changes to the Land Use and Building Act to be implemented. However, the overall reform is a long, years-long process. Urgent changes should be achieved through partial reforms right at the beginning of the government term.
The goal of increasing plot production in growth centers as a condition for infrastructure projects and the policy on the versatility of housing production are directly aimed at small house production. Open questions are how to ensure versatility and what is the sufficient number of plots for small houses. As a condition of its infrastructure investments, the state can influence the number of plots and their distribution between different building types. It can also take a stand on the issue of versatility in the memorandums of understanding signed with the largest cities.
The government program contains many policies on removing obstacles to construction and simplifying permit practices. The general line is to transfer decision-making power from ELY centers to municipalities. This will reduce the friction that the mutual complaints of the authorities have caused to the construction processes. In the future, the supervisory role of the ELY centers is to be changed to a more consultative one and their right of appeal in planning matters to be limited.
We want to promote construction in sparsely populated areas by making the general plan more extensive than the current one as a basis for construction. Normtalkoot is worthwhile, but a big problem is also the zoning that goes into the details, which is building planning. It slows down planning and affects construction costs, especially one-time builders, which are mostly small house builders. The plan specifies the number of floors, location, positioning on the plot, materials, entrances and balconies.
The program talks about the creation of nationally uniform construction standards and generally accepted technical solutions in building permit processing throughout the country, especially to promote wooden construction. The goal of unification should not be limited to wood construction. The building control unit size should be increased to ensure uniform interpretations, sufficient service capability and specialization. The effort to transition to a one-stop shop in building permit matters, to a notification procedure in routine permit matters, and to electronic transactions are good goals.
In zoning matters, the appeal practice wants to move from a municipal appeal to an administrative appeal, which limits the right to appeal to those concerned whose interests or rights are directly affected by the matter. The change is justified as the size of the municipality increases. In the future, the right to appeal to the Supreme Court in construction and environmental matters would always categorically require an appeal permit.
The tax policy's line on increasing the household deduction is welcome, the reduction of the right to deduct interest on mortgages, on the other hand, is not. Planning for a 10 percent annual reduction in the interest deduction is slow enough. Removing the right to deduction at a fast pace completely during the election period, which the government uses as a stick to achieve a social contract, could lead to surprising situations in the housing market.
Anu Kärkkäinen
Director
Building Construction Industry Association
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