Housing associations achieved 78 percent of new building plans in 2019, compared to 61 percent in 2018. The social housing balance increased slightly in 2019 for the first time in years. Investment intentions are also on the rise. More cooperation at the national and municipal level should remove dangerous obstacles: More money alone is not enough. Politics and companies must make choices according to Aw.
Money is not enough
O indicated several years ago that not all investment plans would be realized in the short term. Housing association costs are rising faster than rents. The financial scope for the coming years is still reasonably large, but the plans don’t always take off. Additionally, this sector has little money in the long run for the necessary investments in the social housing stock.
Notes or dilemma for the housing association sector in several areas:
- The call for rental adjustments directly affects companies’ investment capacity in new construction and sustainability.
- The Perception Power of New Housing Companies report shows that a lack of construction sites, lengthy municipal procedures, and sharply rising construction costs are hampering new building ambitions.
- Sustainability investments can only be recovered to a limited extent and are therefore risky.
- In high-share neighborhoods of Housing Association homes, the quality of life is under pressure due to the large influx of vulnerable families. This is due to the allocation policy.
Break through a dead end
Choices must be made to break the deadlock. The potential of the housing union sector is limited. Therefore cooperation with municipalities, central government and tenants is essential. Aw stresses that the policy should provide the sector with a perspective that enables it to fulfill its public tasks structurally. Aedes has been arguing for some time to have the owner tax abolished in order to break the deadlock. The majority of political parties now share this as well.