During the budget crisis, the government decided on specific measures aimed at easing the extraordinary plight of housing construction. In addition, Environment and Energy Minister Kai Mykkänen has later clarified the government's policies. The following is a summary of the upcoming fast-acting measures to stimulate state-supported housing production and housing sales.
The government program includes a recording of the cessation of the production of right-of-occupancy apartments (ASO), which was supposed to be implemented as early as next year. According to the latest policy however, loan decisions for right-of-occupancy properties can be made until the end of 2024 if the interest subsidy authority is sufficient, so production will end in 2025.
The decision was made during the budget crisis due to the economic situation reasonable by 20 million euros for next year a cut of EUR 47 million previously planned for investment assistance for special groups.
To ease the housing construction situation In ARA production, the authorizations of the short and long interest subsidy models are also combined within the interest subsidy loan authorization, so that flexibility increases according to demand. In addition the conditions of the short-term interest subsidy model are being developed. Housing Finance and Development Center processing processes are streamlined and initiation decisions are accelerated.
In the 2023 budget, a total of 1,95 billion euros has been allocated as the authority to approve interest subsidy loans for state-supported housing production. The detailed use of the interest subsidy authority for different purposes is guided by the use plan issued by the Government. Regarding Minister Mykkänen's guidance, the Ministry of the Environment has separately instructed ARA in its letter dated October 20 for the most efficient use of the remaining approval powers for interest subsidy loans in 2023. The interest subsidy projects already in ARA should be promoted quickly, however, in such a way that the costs of construction and on the other hand the state's risks do not increase significantly.
Both for new applications and those already in ARA can also accept the so-called negotiation contracts when the costs of the items correspond to the price level of the same type of tendered items.
With regard to the short-term interest subsidy, the approval of projects can be based especially on the purchase value and the initial rent based on it, as well as taking into account the existing housing market situation and state risks. To implement the policies made by the government during the budget crisis In ARA's project processing, it is necessary to ensure that the interpretations regarding the levels of initial rents do not prevent the start of projects that are necessary in terms of housing policy especially in situations where it is challenging to determine the rent level in the area, for example due to the grouping of housing stock of different prices.
Fund transfer tax rates will be reduced and ASP maximum loan amounts will be increased
The government proposes (HE 64/2023) the reduction of transfer tax rates for real estate, housing shares and other securities. In addition, the government proposes removing the tax exemption for first-time homes. The goal is to improve the functionality of the housing market by reducing the effect of transfer tax on moving and to make the transfer of real estate assets more neutral from transfer taxation. The measure also aims to ease the weakened economic situation in the construction industry.
The Transfer Tax Act would be amended so that the capital transfer tax rate for real estate will decrease from 4 percent to 3 percent, the capital transfer tax rate for housing stock and real estate company shares will decrease from 2 percent to 1,5 percent and other securities, the transfer tax will be reduced from the current 1,6% to 1,5%.
The legal changes are intended to enter into force at the beginning of 2024. The changes in tax rates would, however, already be applied to a transfer that took place on the basis of an agreement concluded on or after 12.10.2023 October XNUMX. The tax rate is determined based on the date of signing the binding contract.
The Tax Administration will return the overpaid money transfer tax with interest at the beginning of next year to those customers who make transactions during the end of 2023 and pay the tax in accordance with the current regulations. The Tax Administration provides practical instructions on the matter on its website.
Lisaksi the tax exemption for first homes is removed From 1.1.2024 January 2023. Purchases of first homes made around XNUMX are still tax-free. Even in these cases, the date of signing the contract is decisive.
The proposal regarding the transfer tax is related to the supplementary budget proposal for 2024 and is intended to be decided in connection with it. The processing of the amendments to the law in the parliament is still in progress.
On the other hand, to ease the position of first-time home buyers The maximum number of ASP subsidized loans will be increased. The ASP interest subsidy loan granted for the purchase of a first home may not exceed the maximum amount established by region. The maximum loan amounts were last increased in 2021. The motion to change the maximum loan amounts is in the opinion. According to the proposal, the maximum loan amount from 1.4.2024 April 230 is 000 euros in Helsinki, 185 euros in Espoo, Kauniainen, Vantaa, 000 euros in Tampere, Turku and 160 euros in other municipalities.