The government changed the way to agree on how much cheap housing will be built in the Helsinki region. It threatens to reduce the construction of housing for low-income people.
Helsinki the region is in a new situation with affordable construction.
Previously, the state and Helsinki, Espoo and Vantaa have mutually agreed on the amount of subsidized housing in land use, housing and transport agreements (mal). Now the government program no longer requires this.
In addition, the state supports the construction of affordable housing less than before.
In the past, it has been stipulated in the agreements that 30 percent of the new apartments planned for the capital region must be subsidized by the state, i.e. small housing stock.
However, it was decided in the government program that such a requirement will no longer be recorded. In addition, the government plans to reduce macaw production.
The construction of new apartments has been tight this year also due to high interest rates and construction costs. Does the construction of cheaper apartments threaten to end completely in the capital region?
Anni Sinnemäki
Helsinki deputy mayor of the urban environment Anni Sinnemäki (vihr) hopes that the government would reconsider its decision to reduce subsidized housing.
He considers it important that apartments for low-income people are also built in the future in Helsinki and the rest of the capital region.
In the new situation, however, it is difficult to assess how much of the new building stock is subsidized housing.
Sinnemäki reminds that the capital region was once criticized for supporting economic growth when there were too few affordable apartments.
“Now we have to make sure that the same thing doesn't happen again. The government needs to think about what their contribution is to stopping the segregation between neighborhoods. At the moment, there are very few handouts.”
Another option for Sinnemäki could be for the municipalities to agree on a certain number of new apartments, which must be subsidized housing.
Tero Anttila
Vantaa deputy city manager for land use Tero Anttila believes, like Sinnemäki, that the municipalities could agree on the construction of subsidized housing among themselves, even though the state no longer obliges them to do so.
He could start contract negotiations based on previous contracts. The municipalities have not yet discussed the issue.
According to Anttila, Helsinki, Espoo and Vantaa have so far complied with the agreed goals for building ara “reasonably”.
Like Sinnemäki, Anttila is worried that the cut in state support will reduce the number of affordable apartments in the Helsinki region. He does not believe that the previous goal of 30 percent is realistic anymore, when the state support is decreasing and construction costs have increased.
A significant reduction in the construction of subsidized housing for years could at worst create a bottleneck for economic growth, says Anttila.
“Living in the capital region is so expensive that, for example, you can't get enough workers in the service sectors to work without affordable housing.”
Espoo branch manager of the urban environment Olli Isotalo are on different lines about what would be the best way to ensure the adequacy of affordable housing. In his opinion, instead of agreeing on subsidized housing, the focus should be on the free market.
“On the side of free financing, in recent years, ways have been sought to produce more spacious apartments, when there is still a need for them. However, it is a different matter how realistic this would be to compensate for reduced state support.”
Espoo already announced before the announcement of the government program that the 30 percent target previously agreed upon by the municipalities is too much. Espoo proposed 20 percent.
Isotalo considers it still challenging to agree on a certain percentage between the municipalities, the number of affordable housing units completed in Häne is a more important indicator than the relative number of all new housing units.
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