Although the situation in the construction industry is still difficult, relief has come and will come from many political decisions. For example, the state has made significant investments in infrastructure construction and has slowed down cuts in subsidized housing production. Municipalities have also stepped up construction. Legislative changes have sought solutions for, among other things, financing and employment, as well as the smoothness of planning and permit processes.
Housing construction financing regulation – improving the availability of financing
Together with the Finnish Financial Services Association (FA), we have been determined to promote relaxations in the regulation of housing finance, which is now the strictest in the Nordic countries. In the spring 2025 mid-term elections, the government presented measures that will begin to partially ease financial market regulation. The maximum duration of housing loans is being extended and the permitted amount of housing company loans and the housing loan ceiling will be increased. Legislative amendments on housing loans and housing company loans are currently in Parliament.
The joint study group of the Ministry of Finance and the Ministry of the Environment, set up in September, will continue its work to develop housing and construction financing until the end of February. In addition, the activities of Fiva will be reviewed separately. In the autumn, RT established its own financing group to strongly bring the views of companies to our advocacy. In Kauppalehti (15.1 January), Minister Marttinen promised that easing financing regulations would be reviewed even before the spring budget deadline.
Transport investment program – state funding at a loss
As a result of long-term advocacy, the government has implemented a record-breaking three billion euro investment program, which includes a strong focus on stopping the repair debt and several supplementary budgets. All funds from the investment program have already been committed to projects, with the exception of Lentorata, which has not yet had a need for funding. The supplementary budgets have provided additional funding of over one hundred million euros, especially for pavements.
Persistent advocacy work will continue to be needed. New funding decisions are needed from the spring 2026 budget campaign, without which the amount of paving will collapse. In addition, the chronic funding deficit in transport must be resolved no later than the next government negotiations.
The Land Use Act and related laws – smooth planning
The comprehensive reform of the Land Use and Building Act (MRL) is finally coming to an end. The Land Use Act includes goals that the industry has long been pushing for, such as the landowner's right of initiative and the registration of cooperative planning in the law. Other laws are also being prepared by the Ministry of the Environment based on the MRL. The Land Use Act is progressing to Parliament in accordance with RT's views. At the end of the year, the government also finally completed the so-called one-stop shop model, in which applications for state environmental permits are centralized in one place and their processing is streamlined.
We have already received the necessary changes in the revision series to the Construction Act, which came into force at the beginning of last year. The revision series to the Construction Act is about to be submitted to Parliament in March. It includes, among other things, binding energy efficiency targets to the revision, as well as the implementation of the Construction Products Regulation (CPR) and the Energy Performance Directive (EPBD), which take into account several issues raised by RT.
State-subsidized housing construction – more pro-cyclical measures
Housing construction is at its lowest level since the recession of the 1990s. No rapid recovery is expected for market-based housing construction, and the situation requires a cyclical increase in state-supported housing production. RT has repeatedly demanded that the state develop the system and increase its authority to grant interest subsidies.
Based on messages from RT and other industry players, the government decided, contrary to its previous policy, to maintain the interest subsidy authorizations for 2026 at EUR 1,135 billion. However, the interest subsidy authorizations for 2027 must be significantly higher, as the current proposal is a meager EUR 500 million. The authorizations for guaranteed loans should also be increased and the product should be made more attractive.
Labor legislation – flexibility in employment
RT has been working together with the Confederation of Finnish Industries (EK) to develop the labour market. Labour legislation is being made more flexible and obstacles to employment are being removed. The threshold for applying the Cooperative Act is being raised and the negotiation periods for amendments are being shortened. The threshold for dismissal on personal grounds is being lowered. A government proposal on making fixed-term employment contracts more flexible was issued at the beginning of 2026, and some changes to labour legislation are still being prepared. The legislative changes lower the threshold for companies to hire new personnel.
Finnvera's development – securing funding for founding contractors
A new Act on Special State Financing Activities came into force at the beginning of 2026, which renews and clarifies Finnvera's operations, tasks and powers. Founder contracting now falls within the scope of Finnvera's financing activities, which RT has been raising for a long time. During 2026, it is necessary to ensure the use of financing terms, such as guarantees, for founder contracting and their functionality in practice.
EU advocacy – stronger lobbying in Brussels
In accordance with RT's strategy, EU advocacy resources have been increased and activities have been developed and integrated into overall advocacy. The annual EU agenda guides advocacy work. We influence EU-level housing policy extensively through Nordic cooperation. The negotiation result for CEF funding for the development of transport networks emphasizes the consideration of military mobility (MilMob). Downstream products have been included in the scope of the Carbon Border Mechanism (CBAM), and the Substances of Concern for Products (SCIP) database will be removed from the Waste Framework Directive. Advocacy continues regarding financial market regulation and state aid regulation, as well as budget advocacy to ensure transport financing.
See also
- Read more about EU influence in the current affairs review
- Applying for a building permit changed at the turn of the year
- New construction rules 2026 – see what changes
- The new year will completely reform the state's regional administration and introduce a one-stop permit model for environmental permits.
- The Land Use Act is progressing positively for builders