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Territorial Review Copenhagen - Region Hovedstaden

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increased by approximately 40% from 1993-2002. Government regulation<br />

curtails cross-trading, which has left in place a rigid structure in such<br />

professions as carpentry and plumbing. For example, currently legislation<br />

prohibits a carpenter who installs cabinets to install a kitchen sink at the<br />

same time, though this is permitted for a homeowner (Finansministeriet et<br />

al., 2004b, cited in OECD, 2005). Lack of competition in the market for<br />

building materials may also raise the costs of housing. Danish construction<br />

companies are often challenged to provide foreign building materials, given<br />

different building material standards across EU countries. The central<br />

national government, however, has made progress on this front: a ministerial<br />

working group recommended a simplification of approval procedures and an<br />

abolition of the requirement to obtain a special Danish approval of certain<br />

building materials. 20 Increasing productivity of this sector and decreasing<br />

home prices on the national level greatly affect the <strong>Copenhagen</strong><br />

metropolitan region‘s housing affordability. <strong>Copenhagen</strong> could prioritise<br />

approval of moderately priced rental units by implementing fast-track<br />

development reviews of these proposals.<br />

Given the low cost of manufactured housing, municipalities in the<br />

<strong>Copenhagen</strong> metropolitan region might consider encouraging its use on a<br />

larger scale. Already the Fund for Cheap Housing (Fonden for Billige<br />

Boliger) has reduced construction costs by using modular, prefabricated<br />

units manufactured in Estonia, Norway, Sweden and Denmark. The most<br />

inexpensive units were built for 30% to 40% less than it would cost in<br />

Denmark (Scanlon and Vestergaard, 2007). To give developers the<br />

possibility of using manufactured housing more frequently, municipalities in<br />

the <strong>Copenhagen</strong> metropolitan region may want to ensure that their zoning<br />

regulations or building codes do not place high-quality manufactured<br />

housing at a disadvantage. Manufactured housing holds a substantial pricing<br />

advantage over traditional housing and may provide greater access for lowand<br />

middle-income residents. This could be particularly attractive for<br />

smaller ―accessory dwelling units‖ commonly known as in-law units,<br />

carriage houses or secondary apartments.<br />

Municipalities in the <strong>Copenhagen</strong> metropolitan region could catalyse<br />

moderate cost developments through deepening partnerships with the private<br />

development community. Though municipalities do not have the power to<br />

impose inclusionary housing requirements for developers, 21 the Danish<br />

Planning Act and its complementary revisions in 2007 would allow<br />

municipalities to encourage moderate cost developments through density<br />

bonuses or rezoning to a higher density. These public-private partnerships<br />

have the potential to lower the cost of doing business to allow for new<br />

construction and to be economically viable. Several countries facilitate<br />

increased production of moderately priced housing through explicitly

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