housing developments in european countries - Department of ...

Section 3
Policies
Policies Section 3
housing market or regions of the country, while in a
Constitution has been asked by the Government to
modified, and tax measures that favour the sale of land
ratio between the price of the residential unit and the
minority of countries, the demand for housing is low
assess the possibility of placing a cap on the value of
have been introduced in order to encourage greater
family income, increasing private investment, which
in segments of the housing market.
development land. Detailed consideration is being
supply. For example, the rate of capital gains tax
could allow, in time, a reduction of the public funding
given to the recommendations contained in the ninth
payable on the sale of land or apartment blocks has
to a large extent and the provision of effective social
In Finland, despite relatively modest economic growth
progress report of this committee.
been reduced to 25% of the average taxation rate
protection for low-income households, young people
house prices have continued to increase as low interest
during the period 2002 to the end of 2004. If these
and families. In order to address these priorities, the
rates have encouraged households to take out very
Unlike Ireland, the housing market in the Netherlands
fiscal measures do not bring about the expected results,
following actions will be implemented in the 2001 to
large housing loans. In order to boost the construction
was relatively well balanced until the late 1990s.
the Government intends to introduce a progressive
2004 period – construction of new rental or privately-
of new housing in the Helsinki metropolitan area,
However, demand for housing has grown
land tax to penalise the speculative retention of sites by
owned residential units, modernisation, consolidation
central government grants to local government for the
exponentially in recent years. Supply has not only
land owners. In addition, a number of measures
or extension of existing residential units, provision of
financing of infrastructure necessary for housing
failed to meet this growth in demand; it has actually
intended to increase the supply of affordable housing,
the necessary infrastructure (public utilities) and
development have been sanctioned for the years 2002
declined since the end of the 1990s. This situation has
both for rent and for sale to persons and households
improvement of housing-related services and
to 2005. Between 2005 and 2009, these grants will
deteriorated by the unwillingness of many households
with moderate or low incomes, have been introduced.
improvement of the legal framework regulating
also be given for other growth areas. In addition,
in both the owner-occupied and rented sectors to move
The new version of the eighth programme for the
housing construction.
part-ownership housing financed by a government-
house, which means that the housing market has
construction of subsidised housing developments,
subsidised commercial loan was introduced in April
become ‘closed’ to new entrants. In order to address
which includes provision for a total of 10,822
In Cyprus, the housing of low and middle income
2002. Under this arrangement, the household initially
this issue a number of new policy initiatives have
dwellings, was approved by Government in March
families is a key concern of policy makers.
acquires a 20% minority holding and lives as tenants
recently been introduced which aim to increase
2004.
Arrangements to address this issue were strengthened
of the majority owner. Between 5 and 12 years later,
housing construction in the Netherlands by more than
with the establishment of the Cyprus Land
the occupant can acquire the dwelling for
30% to 80,000 dwellings per year in the period 2005
Policy makers in Spain have emphasised increasing
Development Corporation and the Housing Finance
himself/herself with the agreement of the majority
to 2010. Measures designed to remove barriers to
new house building as the best method of addressing
Corporation in 1982. The objectives of the two
owner. The acquisition price is the original purchase
construction and stimulate investment in housing by
high housing demand and price increases. In addition,
corporations are, respectively, to supply building plots
value less the part-ownership payments already made
improving land-use planning capacity and space for
the Government has introduced a range of policy
or houses at reasonable prices and provide long-term
by the owner of the minority holding. The aim of the
housing in the framework of spatial planning were
interventions under the auspices of a series of State
housing loans with lower interest rates for low-income
system is to lower the threshold for owner-occupancy.
introduced. Central Government also plans to devise
housing plans. The State Housing Plan which covers
groups.
The distinctive Finnish ‘right of occupancy’ tenure,
housing construction agreements with 20 regional
the period 2002 to 2005, proposes the following
described in Section 2.9, whereby households ‘buy’ a
governments, incorporating a direct relationship
measures which are intended to rebalance the housing
Sweden is an example of a European country where
dwelling by paying 15% of its value, has been
between the number of dwellings to be built and the
market to facilitate access to housing for lower income
policy makers are concerned with excess housing
expanded. The construction of free-market right-of-
provision of subsidies to acquire land. Furthermore,
persons who are unable to acquire it in open market
demand in some regions of the country and low
occupancy dwellings was sanctioned by the
‘booster teams’ have been formed by the Ministry for
conditions, assist young people with low incomes in
housing demand in others. In recent years, the level of
Government in 2003, in an effort to widen the housing
Housing which aim to identify and remove procedural
gaining access to their first dwelling and encourage
new housing output in growth areas of the country,
choices of older people.
impediments on construction sites, in the field of land
sponsored refurbishment of the existing housing stock.
particularly the Stockholm region, has been
acquisition and revisions of local housing building
In order to implement these measures, Central
insufficient, to the extent that the Government is
Low mortgage rates have also driven increased demand
programmes. A number of reforms to rent policy for
Government has agreed initial objectives with Regional
concerned it may lead to the overheating of the
for housing in Ireland. However, as revealed in Section
the social and private rented sectors have also been
Government. These encompass the financing of
housing market and undermine economic growth. In
2.14, population growth and falling household size has
introduced which aim to encourage greater output in
148,767 new social dwellings for sale, the purchase of
response, a number of measures intended to enable
further fuelled demand in this case. In order to address
these tenures. These are described in Section 3.2.2
22,607 existing dwellings, the refurbishment of a total
increased housing construction in these areas, have
this problem, the Irish Government’s strategy is to
below.
of 117,590 dwellings and the development of adequate
recently been initiated. For instance: a committee is
increase housing supply to meet demand and to
land for the construction of 46,739 dwellings.
currently reviewing how the planning process can be
moderate house price increases and improve
In the spirit of sustainable development, Government
rationalised to expedite housing development; building
affordability, particularly for first-time home buyers.
action to address strong housing demand and shortage
In Romania, the 2001-2004 National Housing Strategy
regulations for student housing have been revised and
The measures introduced to boost supply include:
of supply in Luxembourg has focused on promoting
prepared by the Ministry of Transport, Construction
in January 2004 legislation permitting strata – or
significant investment in infrastructure, removing
the renovation and rehabilitation of old dwellings for
and Tourism also singles out expediting housing supply
building unit – titling (three-dimensional property
planning constraints and promoting the increased
occupation. This policy also aims to preserve and
as a key issue. It identifies the following as key
registration) entered into force. This will make it easier
residential densities. In addition, the All-Party
improve the existing heritage. The tax framework in
priorities in housing policy: access to adequate housing
to build housing on top of existing infrastructure and
Oireachtas (parliamentary) Committee on the
which private investors operate has also been recently
for each Romanian citizen, the creation of an optimum
non-residential buildings. In Sweden, high levels of
92 European Union Report
Regular National Report on Housing Developments in European Countries
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