Response to interpellation 2023/24:192 on housing policy

Statsrådet Andreas Carlson (KD)

Mr. Speaker! Denis Begic has asked me what measures I, within my area of responsibility, and the government will take to prevent more people from becoming unemployed and more companies from going bankrupt, especially given the increasing wave of bankruptcies in the construction industry. Denis Begic has also asked me what measures I, within my area of responsibility, and the government intend to take to break housing segregation and to ensure that we reach Boverket's recommended number of newly built homes.

Right now, we find ourselves in a tough economic situation where many companies are being pressured hard by inflation. The tough economic situation affects the construction sector in particular, which faces increased production and financing costs while demand is decreasing. The Government therefore announces in the budget bill for 2024 measures to strengthen the construction sector.

It is, among other things, a notification about a temporarily raised ceiling for the rot deduction to cushion the effects of the tough economic situation and save jobs in the construction sector so that competent personnel remain in the industry when the economy eventually turns.

We also announce two planning incentives, the first to municipalities that adopt detailed plans that provide the possibility to convert premises into housing and the second to municipalities that adopt detailed plans for small houses, this in order to increase the supply of buildable land for small houses.

The Government proposed in the budget bill for 2024 that funds be allocated to Boverket's work to provide and develop existing tools with location data as well as to provide support to and coordinate relevant social actors in the use of data. The tool can, for example, be used to analyze the situation in areas where exclusion is great. Based on location data, several agencies can develop their operations, particularly regarding analysis, planning, and follow-up, in order to contribute to a greater extent to lifting areas of exclusion.

The Government has tasked a special investigator to propose how property owners and the public sector can collaborate to strengthen safety in the built environment. Increased knowledge of the importance of planning for safety and crime prevention work can contribute to more effective measures in the built environment.

We have further appointed an investigator who shall take a position on how the rents for newly produced apartments, so-called presumption rents, can be changed in order to create good conditions for building new rental housing.

To lower the threshold to owned housing, the government has also tasked an investigator to propose an expansion of the system with condominiums and a new model for rent-to-own of housing. This can facilitate things for those who today have difficulty entering the owned housing market, for example young people who are limited by the high capital requirements that are set. A mix of housing forms can also contribute to a mix of people with different socioeconomic situations in a residential area and can then contribute to reduced segregation.

We are also preparing the report Lower the threshold to a good home in the Government Offices. In the report, several proposals are submitted that give households the opportunity to acquire a home that meets their needs. The report contains, among other things, proposals on clearer conditions for municipal housing agencies to apply reservations and a larger scope for priority rights.

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Denis Begic (S)

Mr. Speaker! I want to first take a moment to honor the memory of the construction workers who died last week. Their passing is a reminder of the real people behind the figures we are discussing today. My thoughts, of course, go to their families and loved ones.

Thank you, Minister, for the answer! It is, however, with a sense of deep disappointment that I must state that the government's proposed measures to meet the acute housing crisis are far from sufficient. We face a crisis that requires more than just words - action is required.

The government's proposal to stimulate the conversion of office premises into housing and planning for municipalities with a total budget of 80 million kronor is insufficient to make a real difference. This sum is a drop in the ocean when it is to be divided among 290 municipalities. We need a more multifaceted strategy that includes the construction of new housing.

When we see Boverket's forecast for this year, which predicts that only about 27,000 homes will be started, which is a decrease of 55 percent compared to last year, it becomes apparent that the government's current measures are not sufficient. For 2024, the forecast is even bleaker, only about 19,500 homes. This is far from the 67,000 homes that need to be built.

We are facing a crisis where layoffs and bankruptcies are increasing dramatically within the construction industry. We have to go back to the 90s crisis to find similar figures as those for October and November this year. This situation does not only involve obvious problems for housing seekers but will also have a strongly negative impact on jobs and growth. Sweden is becoming poorer.

The negative development is, of course, driven by global factors such as the war in Ukraine, high inflation, and rising interest rates. But the government's passivity given these factors is truly remarkable. The little that has been achieved has been insufficient and, above all, in some respects, incorrect. The clear examples are the interrupted Sweden negotiations and the removal of investment support. Both of these decisions were made at a time when we were heading into a recession, and they have likely contributed strongly to the standstill that prevails in housing construction.

This is the worst construction crisis since the 90s. If nothing is done, the housing crisis will be permanentized at a high level for a long time to come. The consequences will be great, and fewer will be able to move to take jobs or get an education. It affects skills supply, jobs, and growth. Fewer young people can move out from home. Women exposed to violence will remain in violent relationships. And the government's response to this is 80 million kronor to be distributed among 290 municipalities. For me, it is not serious.

How many new homes, Housing Minister, are expected to be built with the proposed stimulus of 80 million kronor? How many more homes will be built with the proposal on owner-occupied apartments? How many more homes will be built with the help of the higher tax deduction? I really hope that the Minister has figures on that.

(Applause)

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Roger Hedlund (SD)

Mr. Speaker! I thank Denis Begic for his interpellation on the issue. In Denis Begic's interpellation, it is mentioned, for example, that housing policy is not included in the Tidö Agreement. That is perhaps not so strange because we Sweden Democrats, whom I represent on the issue, have a great consensus with the governing parties. In that case, it is natural.

I am proud of what we can present together with the government in the housing policy area. It is finally possible to move forward in the housing policy area, in contrast to under the old government.

Mr. Speaker! The interpellor raises two questions in his interpellation, namely how we shall counter unemployment and the large wave of bankruptcies emerging among construction companies, as well as how we shall reach Boverket's goals.

We are living in a difficult time right now within the housing policy area and in social development in general. I can only state that during the Social Democrats' time in government, the goals set by Boverket for housing construction were never reached. It is a bit exciting when the interpellor thinks that we can achieve the goal that Boverket has set in these difficult times.

I can also state that it is the Social Democrats who have stopped the construction of new housing in Gävle municipality through the housing company Gavlegårdarna. The Social Democrats were the first in Sweden to make that decision. It does not contribute to more housing, and it does not counteract unemployment and bankruptcies among the housing developers.

On the other hand, the Sweden Democrats have persisted, which has gained traction locally, to renovate and maintain more when there are high costs for loans and materials. Right now, it provides good conditions to renovate and maintain during local procurements. It is advantageous to do it now, and it is a good way to create conditions to continue working within the industry.

In the government's budget, which has been presented together with the Sweden Democrats, we are raising the rotavdrag to 75,000 next year. It is also an important and good measure to continue to create conditions for people to work within the industry. It is of course a small part, but it is one of many parts that we, together with the government, are presenting.

The financing is for housing developers and private individuals A and O in the entire discussion. There are a number of measures that we, together with the government, are presenting, and they have been discussed during the evening. They range from the County Administrative Board being to map the efforts that the County Administrative Board makes for housing construction and also cooperate with the municipalities. The digitalization of comprehensive plans and regional plans is another part. The government, together with the Sverigedemokraterna, is presenting 40 million kronor to further digitalize open geodata.

There are many measures, both small and large, in the housing policy area that make it possible to reverse the development today and, in the long term, change the development. That was exactly what the interpellor began with, namely that a long-term strategy within housing policy was needed - and that is what the Sverigedemokraterna deliver together with the government.

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Markus Kallifatides (S)

Mr. Speaker! I thank the Minister for the answer to Denis Begic's pressing interpellation. I may possibly anticipate some things that the Minister will say further ahead in the interpellation debate. We have had a few rounds together in the chamber on these issues.

We Social Democrats believe that the measures that Andreas Carlson lists, including today's interpellation answer to Denis Begic's question, are insufficient. We propose a series of sharp and immediate measures to meet an acute crisis situation for housing construction in Sweden, and we have already had several debates on the subject during the evening.

I actually have two questions that I want to throw into the debate.

The government seems to make the assessment that even relatively small interventions here and now to speed up housing construction in some way would jeopardize the fight against inflation. It is an argument that we often hear. Then I would like to hear, a bit more deeply, the reasoning behind the fact that, while maintaining that message, one simultaneously moves forward with extensive tax cuts that increase disposable incomes broadly in society. This potentially raises our purchasing power, which may drive up inflation. Why is it a better priority to lower the fuel tax for me and Andreas Carlson, to the extent that we have "wrong" vehicles, lower the plastic bag tax, introduce a luxury car deduction, and most recently announce a lower tax on capital income on investment savings accounts? Why is it a better measure in this situation than to provide funds for those types of measures?

Here is my next question. The Minister for Housing signals that the government already envisions that inflation has gone down. Andreas Carlson has repeatedly spoken about a broader toolbox. The government stands ready to take several measures. What would these measures be, and how is it that they are not being taken already in this situation? We Social Democrats are persistently trying to assert that it is extremely urgent to now implement acute measures.

I want to link to one of the questions that Denis Begic raises in his interpellation, namely the question of residential segregation – and here I turn to both Roger Hedlund and Infrastructure and Housing Minister Andreas Carlson. I note that one of the things that Roger Hedlund says he is proud of is that the investigation that had been conducted to produce new concrete tools to combat residential segregation has been scrapped. It is a serious problem in Sweden, and that investigation was scrapped by the Tidö majority.

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Statsrådet Andreas Carlson (KD)

Mr. Speaker! I thank you for the commitment and for the questions.

Let me first go into a bit about Boverket's goals and the number of housing units that need to be built in Sweden. It is very true as Roger Hedlund points out, namely that not during a single year with the Social Democratic government, when the money was almost free and there was a booming boom, did one manage to build as many housing units in Sweden as there was need for according to Boverket.

Tonight we are having an interpellation debate in the chamber, and regarding Denis Begic, it almost sounds as if one has greater hopes and greater expectations that the bourgeois government, in cooperation with the Sweden Democrats, will be able to get even more housing built in a tough economic situation with high inflation and a recession that looks set to persist.

It is clear that one can expect, if one is very optimistic, that we will be able to have more housing built during this year or next year than the Social Democrats had during the boom when money was almost free. But it calls for some self-reflection. It was, in fact, the case that there were structural problems in the housing market even then that were not fully addressed.

Markus Kallifatides points out that acute measures are now to be implemented. Yes, but we would have been even better equipped in this tough economic situation if even more of the right measures had been implemented to shorten lead times, improve and simplify regulations, make buildable land available and achieve a better functioning housing market during the good years. Then we would have been better equipped in the very tough situation that we are in right now.

Inflation is a cause of the tough situation we have. It is very important to take responsibility for the economy and for the budget, which is then weakly restrictive. It aims to dampen inflation.

It is very true that if the recession persists but inflation goes down, there are other tools in the toolbox that the government is, of course, prepared to use if it should be necessary. The government is always prepared to act.

So, to the questions from Denis Begic about what the various initiatives I have accounted for could mean in terms of the number of housing units.

When it comes to the incentives, I want to point out to the Chamber that this is about planned housing. It is the municipalities that then see what opportunities are available and, ultimately, also the construction companies. But the incentives that exist in this budget could contribute to the planning of approximately 4,000 small houses during 2024 and approximately 5,000 small houses per year during 2025-2026.

Furthermore, it is estimated that the conversion stimulus can contribute to more than 133,000 square meters of floor area being converted to living area during 2024 and more than 166,000 square meters per year being converted during 2025-2026. The number of dwellings that it could contribute to is, of course, dependent on what size the dwellings are. What I am answering here is the area calculated in square meters.

With that, Mr. Speaker, I have answered those questions.

The purpose of the rotation withdrawal increase is to be a cyclical measure in a currently vulnerable sector. Saving some jobs in the construction and housing sector can also save some jobs in the subcontracting chain. If one, for example, renovates and takes certain measures such as replacing windows to achieve lower energy costs, it can be a measure that is cyclically correct in this tough situation and saves some jobs.

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Denis Begic (S)

Mr. Speaker! First, I must say that I have absolutely no expectations for this government, which is supported by the Sweden Democrats.

The problem is perhaps not that I have no expectations, but that the entire construction industry and the construction sector and everyone else no longer have any expectations at all of the government. One only has to google it, and then you can see what the construction industry says about this government.

I did not mention anything about residential segregation in my previous post, so I want to say a few things now.

One of the main drivers behind residential segregation is, of course, the housing shortage. When there is a shortage of affordable housing, low-income earners and marginalized groups are forced into certain areas.

We need a comprehensive plan to build more affordable housing. The Minister also mentioned in his response that we need mixed housing. It is of the utmost importance, and we need to work together to achieve mixed housing.

The housing shortage not only exacerbates residential segregation but also the economic and social gaps in our society. Segregated areas often suffer from a lack of investment in infrastructure and public services. This includes everything from public transport to education and healthcare.

To combat residential segregation, we must also look beyond physical structures and address social issues. This includes promoting integration through education, labor market measures, and community-building activities. The government's current strategy lacks a clear plan for these important social interventions.

Of course the municipalities play a key role in managing residential segregation. That is why we have proposed support to the municipalities so that they can develop and break down the segregation. We believe that the government's current measures are short-sighted and lack a long-term vision.

The Minister has previously emphasized the importance of combating inflation. But then we must ask ourselves how we weigh this against the immediate needs of the people who today are struggling to put food on the table. Is not their well-being just as important as combating inflation?

We now face a Christmas period where many families feel uncertainty and anxiety, not only for their economic future but also for their basic security in everyday life.

Of course we need long-term plans. I know that the Minister for Housing has said many times here in the chamber that they are satisfied with the majority they have. But I want to say once again, for everyone in Sweden, to the Minister for Housing that we Social Democrats are ready to talk and discuss long-term solutions.

Today, a report was actually released on how things look. The Minister's party may not be in the Riksdag next mandate period. Let us work together to actually get long-term measures when we have the chance to do so!

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Roger Hedlund (SD)

Mr. Speaker! Denis Begic speaks about talking about long-term plans. When his party invited people to housing policy talks, the Sweden Democrats were not invited, so I do not know how serious one is when one is not willing to discuss this with all parties in a good way to reach an overall common view on future issues.

Now we have no need for that. Now we have a new government, and we have a majority. It looks completely different, and we have good consensus with the government on these issues.

The interpellator is here regarding residential segregation, Mr. Speaker. It is somewhat comical in this context because it is precisely the Social Democratic government that has created a powerful residential segregation with its migration policy during all the years they have governed, while we, with the new government, are going in the opposite direction and strongly limiting the migration policy. Thus, we are going in the other direction when it comes to residential segregation, and furthermore, we are stimulating return migration. That is taking action on residential segregation.

Otherwise, there are many issues to discuss. I would like to highlight one: the Public Procurement Act.

It is legislation that needs to be reviewed, and there is an opportunity to reduce costs by 8-10 percent in the new production of housing. It is an effective way to get housing construction started and to bring down costs for future rents.

The Sweden Democrats, together with the government, have presented a number of proposals to simplify the rules for construction, for example by shortening lead times, providing more opportunities to enter the owner-occupied housing market and utilizing the existing stock much more effectively than has been done previously. With that, Mr. Speaker, we have the opportunity to make a truly powerful change for future opportunities for increased housing construction.

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Markus Kallifatides (S)

Mr. Speaker! I thank the Minister for the previous answer.

To Roger Hedlund, Sverigedemokraterna, I want to emphasize that we Social Democrats have submitted proposals to exempt public services from the Public Procurement Act for the time being. I believe that is still being prepared at the Government Offices. So, that is the situation with that.

I want to mention something that I noticed in the Minister's previous speech. There is a bothersome backward-looking trait in Swedish parliamentary debate. Now it is Andreas Carlson who has been Minister for Infrastructure and Housing for a year. The world changes. There is war, there is peace, there is misery, there is hope.

Here we stand. This is the reality. We have a collapsing housing construction in Sweden, we have an accelerating housing shortage and worsening social problems. What is the sitting government and the current parliamentary majority doing about the problems? That is the question. That is what we have interpellations for. I did not receive an answer to my two perhaps somewhat awkwardly expressed questions. I repeat them and hope for an answer in the minister's upcoming contribution.

What measures, more than those already taken or proposed, does Housing Minister Andreas Carlson envision when he makes the assessment that it would be appropriate from an economic perspective, i.e., when inflation is considered sufficiently combated, to take out new tools from the toolbox?

How does the government view the current prioritization of a series of tax cuts over even the most minimal investments to get shovels in the ground at Swedish construction sites again?

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Statsrådet Andreas Carlson (KD)

Mr. Speaker! It is true, as Markus Kallifatides is pointing out, that it is a very gloomy situation in large parts of the world. I actually do not know which conflict the member is referring to that we have recently seen a peaceful solution to. Unfortunately, much goes in the other direction. It is clear that in the long run, it also affects the situation here in Sweden.

Let me go back to Denis Begics' question about expectations. I may not be able to influence Denis Begics' expectations. What I expressed was the rhetoric that the member uses, Mr. Speaker. It sounds as if if the government tackles the problems, more housing will be built in Sweden, despite high inflation and a recession, than what the previous government managed to achieve during any of the individual years when it was a situation with a booming boom and money was almost free. It becomes, so to speak, a bit of a simplistic rhetoric.

Then I understand that the expectations may not be so high from the member himself. But from the construction industry, the expectations on the government are high. They are high that we should carry out the structural reforms that many have seen a need for for a very long time. Problems have characterized the construction and housing market, which has affected the housing market very negatively for a long time.

There is, in many and much, a consensus and agreement regarding the measures we see as necessary to shorten lead times, simplify building regulations, and make buildable land available in attractive locations. On the other hand, there are divided opinions regarding the introduction of costly investment subsidies, which we have discussed earlier this evening, Mr. Speaker.

The housing shortage cannot be solved with costly subsidies with low precision. Hyresgästföreningen's own investigation shows that 40 percent of the investment support went to housing that would have been built anyway. This corresponds to 10 billion kronor that could have gone to schools, welfare, and other initiatives that members highlight in many other contexts. But one does not take responsibility for what one would have done with the large hole that one would have created in the budget if one had not done what the government is doing, namely abolishing the investment supports in a responsible manner.

It is correct that the question regarding the Public Procurement Act is a proposal suggested in the investigation "Lower the threshold to a good housing" which is being prepared in the Government Offices.

I am asked, Mr. Speaker, what measures I envision and when the toolbox could be used if we succeed with the broad ambition to dampen inflation. The government will, of course, return to that. It is nothing that I want to pre-announce in this interpellation debate tonight, but we stand ready to take the measures that are required. But it is ultimately about succeeding in dampening inflation, addressing the structural problems that characterize the housing market in Sweden, making buildable land available, shortening lead times, and improving regulations. It is a prioritization that the government has had since day one. We will continue to work on that, so that the housing market is better equipped for the future, and at the same time dampen the effects here and now with the measures that we have proposed.

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Denis Begic (S)

Mr. Speaker! I believe the Minister is eager for things to go well in the construction industry and that we will get a construction boom eventually.

I cannot help but comment on Member Hedlund's various claims. Perhaps the Minister has requested that Roger Hedlund be here to help in the debate. Let us, for once, ask what is fact and what is fiction. 400,000 homes were built during the previous government. 200,000 were built during the Reinfeldt government, i.e., half as many. 60,000 homes were built last year. This year perhaps 25,000 will be built and next year perhaps 19,000. That is fact.

The entire industry, including the construction companies, the property owners, the Tenants' Association etcetera, says that the government is not doing enough for us to get the housing market to function. And we are losing valuable time when people are now going to disappear from the industry.

No, I do not have such high expectations. But I hope that I am wrong.

I also want to say that in these times, as we approach Christmas, it becomes more tangible how important it is that we work together to support and back the construction industry. Its health and robustness are crucial for our country's economic well-being.

With this in mind, I would like to take this opportunity to wish the Minister, his staff, and everyone else here a Merry Christmas. I hope that this holiday brings hope and renewed energy, so that we can together meet the challenges we have next year.

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Statsrådet Andreas Carlson (KD)

Mr. Speaker! I would like to thank the interpellor for the closing words and for the commitment.

I wish the member and the other members in the chamber a Merry Christmas and that we can together tackle 2024, a year that also looks set to be tough. This type of dialogue and conversation is important so that we can collectively take responsibility in a difficult time for Sweden.

Fighting inflation will, of course, continue to be important, because if we collectively fail at it, the situation around the kitchen tables in Sweden will become even tougher. It is a fundamental prerequisite for us to achieve a better situation broadly across our country. In addition, we may have slightly different perspectives regarding what is the best way to achieve a better housing market in Sweden. But I do not doubt the commitment from any of the members in the chamber, and for that, I want to extend a big thank you to you.

The interpellations debate was hereby concluded.

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