Investigator Peter Larsson's task, as outlined on the government's website, involves recommending state initiatives to accelerate housing construction in fast-growing municipalities. This aims to meet the short- and long-term demand for sustainable housing and living environments.
Peter Larsson, a government-appointed investigator has presented proposals aimed at accelerating housing construction in the northern Swedish counties of Norrbotten and Västerbotten.
– The pace of housing construction can increase rapidly. Everyone is ready to go, stated investigator Larsson.
The plan focuses on five key municipalities: Boden, Gällivare, Kiruna, Luleå, and Skellefteå, all facing significant demand for new housing units.
Larsson's proposal comprises three interconnected measures:
- Increased capital for Norrlandsfonden: This regional development fund would receive additional resources to provide loan financing for housing projects. Norrlandsfonden provides financial support to businesses in northern Sweden, primarily in the form of loans, convertible bonds, and various guarantees. This support aims to assist companies in the construction and housing industry, particularly in designated expansion municipalities like Skellefteå, to raise funds for residential development. Larsson has proposed allocating 4 billion kronor from the state budget as a capital injection for Norrlandsfonden. This investment is estimated to enable the financing of approximately 8,000 new permanent housing units.
- New government credit guarantee: This initiative would facilitate access to credit for construction companies and developers. The investigator argues for the new proposal due to limitations in the existing credit guarantee, which he has deemed inadequate for "municipalities with a historically weak housing market that are now experiencing or anticipating a surge in demand." Larsson emphasizes believes "housing construction in Skellefteå could have begun earlier if such robust instruments had been available."
- Government rental loss guarantee: This measure aims to mitigate the financial risk associated with building new rental housing. The guarantee sees the state either pledging to "cover a portion of the rental income under specific conditions for a set period" or by "directly compensating for any rental losses incurred."
– These proposals will help small and medium-sized construction and housing development companies in Norrland secure the necessary equity capital, explained Larsson.
The rental loss guarantee is designed to incentivize investment in new rental housing by addressing potential financial risks.
Larsson emphasizes the complementary nature of these proposals, stating:
– Market actors tell us that both incentives and risk mitigation are essential to trigger sufficient housing construction in these towns.
Skellefteå councilor Lorents Burman (S) welcomes Larsson's proposals for state action on housing construction, urging swift implementation.
Lorents Burman (S), a municipal council member in Skellefteå, welcomed the proposals but urged for swift action.
– We urge the government to promptly implement the necessary measures, he said.
– This includes not only the proposals presented today but also other measures that we in Skellefteå have advocated for some time.
Larsson's proposals represent a partial report within a broader investigation tasked with facilitating community development in municipalities impacted by the recent green transition industrial expansion. The full report is due by June 15, 2024.
In the interim report from the investigator tasked with promoting coordination of efforts for sustainable community development in Norrbotten and Västerbotten counties, three proposals are put forward. "The three proposals complement each other, and the investigation suggests that they be implemented as a package," states Larsson.