The document proposes reforms to the Swedish housing market to address issues like widespread housing shortages, inefficient use of existing housing stock, and slow planning processes. It recommends increasing mobility by reforming rent negotiation agreements and adjusting older rental prices gradually to market rates. It also recommends increasing new construction by simplifying planning processes, reducing appeals against plans, and allowing more private sector initiatives. The proposed reforms aim to create a better functioning housing market that meets the needs of all residents throughout different stages of life.

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

2. Housing Crisis Committee

3. 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

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

5. 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

6. 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

7. 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

8. Björn Hasselgren, PhD
KTH Royal Institute of TEchnology
+46-70-762 33 16
bjorn.hasselgren@abe.kth.se
www.kth.se/blogs/hasselgren
@HasselgrenB
@BoKomm