The main goal of the development program to be implemented in 2021–2028 is to promote the long-term perspective of housing policy.
“Urbanization continues. The Finnish housing market is still differentiated, not only between different types of regions, but also within cities. With a good housing policy, we can reduce inequalities and create more equal, further diverse residential areas. For both residents and the natural environment,” says the Minister for the Environment and Climate Emma Kari he describes the main challenges of housing policy. “In order to combat the climate crisis, it is essential that Finland moves even faster towards low-carbon construction and housing,” says Kari.
Guiding principles for housing policy
The Housing Report emphasizes the need to better identify the impact of different policy areas on housing than has been the case so far. At the same time, housing policy can promote equality, curb climate change and labor mobility, and smooth out cyclical fluctuations. In order to ensure the desired political impact, housing policy must be pursued on a long-term basis and across administrative sectors.
A key principle of housing policy is that everyone has the right to live in a place that supports well-being and the environment. The climate and environmental impacts of housing must also be taken into account when developing housing policy: one third of greenhouse gas emissions are caused by construction and buildings. Good urban planning, the transition to renewable energy sources and the long service life of buildings reduce the carbon footprint of the built environment.
According to the study, the role of the state in the housing market is to promote the good functioning of the housing market and to try to smooth out the effects of cyclical fluctuations in the construction sector. The housing market needs different types of housing: owner-occupied housing, right-of-occupancy housing, private landlords, institutional actors and state-subsidized housing production. With regard to state subsidies and subsidies, all types of housing must be treated equally.
The state’s housing policy measures offer much-needed solutions
The means of the state’s housing policy are the land use, housing and transport agreements (MAL) concluded by the Finnish state with the seven largest urban areas. The agreements guide the number and location of new homes in a way that makes sense for mobility and the environment.
State-subsidized housing production by the Center for Housing Finance and Development (ARA) is an important way for more people to find affordable housing. State-subsidized housing production is mainly directed to growth centers, where the demand for housing is highest. In order to develop the housing stock of shrinking areas of the population, the renovation opportunities for housing companies will be improved.
The development program also includes measures targeted at specific groups. The ASP system, which offers a home saver bonus, is being further developed to make it easier for young people to buy their first home. Finland is also preparing for an aging population by building one million barrier-free homes by 2030. The opportunities for the elderly to live in their own homes are supported by a renovation grant.
What next?
Parliament will discuss the report in the spring session of 2022. The housing policy development program will lead to various studies, legislative projects and a wide range of measures in the future. Many of the solutions are included in the prime minister’s program Sanna Marinn government.
The Government’s housing policy report is based on the work of a working group chaired by all parliamentary parties in 2020. The working group was chaired by Hannele Pokka, former Chief of Staff of the Ministry of the Environment.
Source: Ministry of the Environment
Source: The Nordic Page