Housing manufacturers are furious at the authorities’ tightening of mortgages.
Finanstilsynet recently advocated tightening of the mortgage regulations, by removing the so-called “flexibility quota”. It has given banks a greater opportunity to exercise flexibility during the corona crisis.
The proposal from the authorities arouses strong criticism from Boligprodusentenes Forening.
– We are very concerned that the announced tightening of the mortgage regulations does not take into account employment and value creation in housing construction, the organization writes in a sharp consultation response to the Ministry of Finance.
According to their figures, each new home provides approximately 3.4 man-years in the entire value chain. They thus believe that the tightening will lead to lost jobs.
– A fall in new home production therefore has major consequences for employment, says CEO Per Jæger.
The seas: The bank with a juicy interest rate cut: – Customers are pouring in
– Norway is more than just Oslo
The housing market has been hot in recent months, and prices have risen sharply in Oslo. This means that housing manufacturers will be an even bigger problem if it becomes more difficult to get loans for new homes.
– The mortgage regulations are in reality designed to meet the challenges in the Oslo area with rising housing prices in the second-hand market. The housing market in Norway is more than just Oslo, and we must distinguish between new homes and used homes so that regulation of price increases in metropolitan areas does not reduce new construction in the rest of the country and accelerates centralization, says Jæger.
Also read: Price record: – The housing turnover of all time
The housing manufacturers also believe that the media helps to give an impression of a housing market that is boiling, but that this largely applies only to Oslo.
– The second-hand market in Oslo shows a disturbing rise in prices. At the same time, the new housing market is historically low. Sales so far are 20 percent lower than last year. Fewer new housing projects amplify price growth in the housing market, especially in Oslo and the big cities, says Jæger.
–
