Housing package presented

Two-hundred new flats immediately, an emergency housing list, authorisation for the national housing association to borrow more money and tax breaks for private landlords.

This is the crux of the government’s much anticipated solution to the current housing shortage. The report was presented this morning.

Bústaðir, the national housing association, will be overseeing the building of 200 flats, which will be added to the 400 currently being constructed by the association.

Bústaðir currently has 262 rental properties, and according to the new housing package, another 200 flats will be built immediately.

On top of that, 200 more flats are being planned and another 200 will be expedited, all of which, according to the government, will be affordable accommodation.

The housing package also contains plans to speed up the construction of housing for people with special needs, as well as the creation of an emergency housing list.

In addition to building more flats, the government wants to increase the maximum taxable income from long-term private house rentals in an effort to encourage private landlords, especially those who own more than one property, to rent out their houses.

The maximum taxable income will increase from DKK 50,000 to DKK 150,000.

It is estimated that this change will lead to an annual DKK 3 million reduction in local and national tax revenues, but the Ministry of Finance believes the measure will go a long way towards solving the current housing shortage.

See also:

Tax break “unfair” on commercial landlords

Rental market under pressure

Translated by prosa.fo