”A Functioning Housing Market – a Reform-agenda” Housing Crisis Committee 5 November 2014 Björn Hasselgren, PhD

Housing Crisis Committee

Terms of Reference Present concrete proposals on how the Swedish housing market should be reformed in order to function better -> Primary focus on the rented housing market and the current rent setting policies – and a reform of these -> Other areas of interest zoning proceses, regulatory systems and legislation for housing construction -> International experiences -> Social aspects, distributional effects etc

An analytical model Supply Demand Financing Planning/Zoning Taxes Infrastructure Construction regulation Urbani- zation Econo- mic de- velop- ment Values Demo- graphic develop. Rent regula- tion

Vision 1. Housing for all stages of life 2. Mobility and chains of moves 3. More extensive new construction 4. Better use of existing stock of housing 5. No waiting lists 6. Preserved strong security of tenure 7. Reduced segregation in current and new- constructed areas

The reality today Widespread housing shortage – acute for low income families an young people. Black markets. Too low new-construction Inefficient use of existing stock Too slow planning and zoning Too much regulation in general Political targets in housing policies not met Tax policy that leads to lock in Combined reform affecting bort supply and demand is necessary

A reform agenda Increased mobility -Rent Negotiation Act – remove forced collective negotiation agreements – but keep voluntary right -new flats – free prices -older flats – gradual price adjustement to market -after adjustment – rents adjusted in relatio nto CPI during a contract -strong security of tenure -temporary financial support to weaker groups -not ”social housing”, but reserved flats for municipial housing services -reintroducce low property tax - reduce capital gains tax Increase new construction -simpler and faster planning processes -less detailed plans on a higher level -reduce ability to appeal against plans -reduce number of specific local regulations -open for initiatives from private construction firms

Björn Hasselgren, PhD KTH Royal Institute of TEchnology