The government's mid-term decisions on income tax relief and changes to financing regulations will strengthen both the demand and supply of housing. Aleksi Randell, CEO of the Finnish Construction Industry Association (RT), welcomes the solutions, as well as additional investments in infrastructure investments and the elimination of repair debt.
Housing sales are still slower than usual and new housing construction is at a historically low level for the third year in a row. The Construction Industry Federation (RT) is pleased with the government's decisions on measures to boost the housing market and growth.
"The deregulation of the Nordic countries' most stringent housing finance regulations will make it easier to access housing loans. Income tax relief, in turn, will increase purchasing power. Together with lower interest rates, they will encourage Finns to buy homes and also help to kick-start housing production," says Aleksi Randell.
According to a memorandum published by the Government, the Government has decided on the following actions:
- The maximum term of housing loans will be extended from 30 to 35 years.
- The Financial Supervisory Authority is allowed to raise the mortgage loan ceiling from 90 percent to a maximum of 95 percent for all homebuyers.
- The regulation of housing company loans will be maintained as it is today, but it will be possible to change the maximum loan portion (60–70%), the duration of the repayment holiday (1–2 years), and the maximum loan term (30–35 years) by decree if necessary.
Putting these into practice requires legislative changes. Randell emphasizes that it is important to move quickly so that the changes can accelerate the housing market.
A total of EUR 300 million will be allocated to infrastructure construction, an expansion of the approximately EUR 4 billion investment program in accordance with the government program. EUR 100 million of the expansion will be allocated to cover the increased cost estimates of previously decided projects and EUR 200 million to several infrastructure investments, including a track gauge study.
In addition, 120 million euros will be allocated to the settlement of infrastructure repair debt, which covers, among other things, the basic improvement of Savonrada and the start of the renovation of the main line.
"Investing in infrastructure is essential to ensure growth conditions and security of supply. The decisions made now will ensure the progress of many important projects," Randell states.
Randell also emphasizes that Finland's desire for connectivity and accessibility to the West must continue to be concretized. "Its importance cannot be overemphasized in the current situation."
More information
Aleksi Randell, CEO, tel. +0400 500 822 XNUMX, firstname.lastname@rt.fi
Merja Vuoripuro, Director of Communications, tel. +040 587 2642 XNUMX, firstname.lastname@rt.fi