SATO makes commitment to rental housing production based on proposed new interest subsidy model
12 November 2015
The proposal concerning a new interest subsidy model presented by Rapporteur Hannu Rossilahti, appointed by the Ministry of the Environment, encourages housing sector players to increase the construction of rental homes in Finland's largest growth centres. It is a positive sign for forward-looking operations that the model is intended to remain in place on a permanent basis.
SATO CEO Erkka Valkila:
- The proposal indicates a genuine desire to create a well-functioning model to promote rental housing production. This is illustrated not only by the outcome by also by the process employed in the work. The starting point was to formulate a proposal in interaction with the key players and public servants in the housing sector.
- The conditions drawn up are such that the ratio of government support and restrictions is good. At current market interest rate levels the interest subsidy is not realised, but it can be compared with interest rate hedging.
The proposal contains a complete flexible implementation model. The legislation should be put in place as soon as possible due to the high demand for rental homes. The refugee situation will also further increase the need for rental housing over the next few years in the Helsinki Metropolitan Area in particular. To step up production, municipalities should also provide the players with sites for the construction of these 10-year interest-subsidised homes. In addition, homes covered by the proposed interest subsidy model should also be included in Housing Finance and Development Centre of Finland (ARA) development referred to in the letters of intent for land use, traffic and housing (MAL) between the state and city regions.
For more information please contact:
Erkka Valkila, CEO, phone +358 50 620 50
Tuula Entelä, Vice President, Helsinki Region and St Petersburg, phone +358 400 612 914