A welcome package from Kehysriihes for renovation construction

The government decided on the necessary measures to accelerate renovation construction in the budget session. However, the session was disappointing in terms of new housing construction. The Finnish Construction Industry Federation (RT) emphasizes that the government must be prepared to take measures to strengthen consumer confidence if the housing market crisis continues.

The renovation construction package will accelerate the start of renovation projects and promote construction in a difficult economic situation. The renovation grants will support both employment in the sector across the country and the achievement of Finland's energy efficiency targets. The development of the residential housing reserve and the state guarantee for renovation loans for housing companies, as well as the increase in the household deduction, will also increase renovation construction, which has been in decline in recent years.

"The government's decisions are accelerating renovation construction across Finland, but do not include significant measures to strengthen the housing market. The prolonged weak situation in the housing market is slowing down Finland's economic growth. Private consumption will not recover until the housing market recovers," CEO of the Finnish Construction Industry RT Aleksi Randell says.

The prolongation of the crisis requires additional measures

A prolongation of the war with Iran or a new escalation in the Middle East will quickly make the growth prospects of the Finnish economy and construction even weaker than they are now. The war has rapidly increased both interest rates and fuel prices.

"The Iran war will postpone the recovery of the housing market again. The government should take action to prevent the situation in the housing market and construction from worsening further," Randell points out.

The already realized increase in fuel prices is particularly pressing on companies operating in the transportation and machinery sectors. RT proposes reintroducing the previously used fixed-term fuel subsidy.

Additional investments in transport projects necessary

"The cuts in funding for basic road maintenance are short-sighted and will accelerate the growth of the repair debt. At the same time, we thank the government for launching new transport projects and providing additional funding for investments that have already been decided," says Randell.