New budget threatens the construction of 5,000 housing units

In Skövde planned the municipal company Skövdebostäder to build 132 flats.

the Company has applied for state investment aid for 43 million crowns for the construction. They had safely received the money the next year, if the government's transitional budget passed through Parliament. But did not do so, but the Conservatives and christian democrat budget proposal won favour instead.

is the investment removed – which has consequences for the Skövdebostäders planned construction.

– Without the investment aid will be the scenario, impossible to get together. It would mean too high rents for a student, " says Dan Lynch, president of Skövdebostäder to the magazine fastighetssverige (property sweden).

At the Building, who pays out the money, there is a list of 100 ready-made applications for a total of sek 1.5 billion in investment. It is a total of 5,000 dwellings, which now may not be built, because they do not fit within the framework that applied for investment aid, in 2018.

– the Problem is that many developers counted with the support of their calculations, because there is constant talk about either a continuation or a gradual reduction in the call on the upcoming budget proposal from all parties. With a gradual reduction would we get a chance to work differently with future projects, " says Dan Lynch to fastighetssverige (property sweden).

In 2018, has about 270 applications for investment aid granted, which corresponds to 10,000 new rental units, according to the Building.

introduced in 2017, has always been politically controversial. Ruling coalition parties had agreed has been opposed and not even in the construction industry, there is a wholehearted support for it.

Marie Linder says she has respect for the fact that there is a resistance. But she turns against that the aid be removed without replacing it with something else.

"the Housing sector needs a long-term approach – but this is no alternative," she says.

have heard from several property owners about the concerns they have before that support is taken away. Himself visited her in the last week of a project in Trollhättan, which is now at risk of not being built.

Linder points out that Sweden has a great need of new housing, at the same time as the construction is now declining. To abruptly remove support for investment is, she says ”huvudlöst”.

After a slow start, the investment aid has become more popular, in particular since the spring. This year, according to the Building, the number of applications for aid increased by 138 per cent.

Read also: Building: New housing starts by housing reduces