Social Housing Policy in Sweden – from an Alternative

to Mainsteam

Lena Magnusson Turner

Institute for Housing and Urban Research

Uppsala University, Sweden

Overview

Housing policy in Sweden

Public housing

Public or social – who are the tenants

Conversion of public housing to cooperative housing - consequences

Housing policy in Sweden – the basic ides‘ from 1940´

Phase-out housing shortage

Increase housing standard – good housing till everyone

Public housing as dominating tenure form

Strong municipalities

Housing policy after 1990

1990’ – housing policy division Financial policy

Decreased subsidies More market oriented

Social housing policy – prestige word Reasonable housing costs Good and equal housing standard Integration and social rights

Developments in housing policy in Sweden More selective

More demand oriented

More on market terms

Subsidy-Tax Trends in Europe

Less tax benefits to owners

Less interest subsidies

Less allowances to households

More grants (incl. VAT reduction)

Less public/social housing, more housing associations (with grants)

Modest increased real estate taxes

0

10 000

20 000

30 000

40 000

50 000

60 000

70 000

1992 1994 1996 1998 2000 2002 2004 2006

Year

Mill

ion

SE

K Real estate tax

Total mainsubsidies

Subsidies and taxes

Subsidies and allowances

0

5000

10000

15000

20000

25000

30000

35000

40000

45000

50000

1975 1978 1981 1984 1987 1990 1993 1996 1999 2002 2005

Year

Mill

ion

SE

K

Housingallowances

Housingallowances topensionersInterestsubsidies

New housing policy in Sweden - arguments Subsidies phase-out

Subsidies limits competition Increasing competition by stable condition for

housing construction and owning

Increased housing construction Increased labour participation, lower

income tax, low interest rate level

Right to sell public housing Ownership as a mean to reduce social

exclusion Rental tenure an important mean for labour

market policy

New social housing policy

Guarantees from municipality for weak families

Stimuli to buy

Public housing as idée

Publicly owned houses in Sweden - a tenure form open to everyone No closed entry – no maximum income

Compete with other types of housing

No stigma to live in public housing

Who is living in public housing in Sweden?

15 % families from poor countries (2 % OH)

10% families on social benefit (1% OH)

10% single mothers(5% OH)

10% fifth quintile (25% OH)

Changes on the housing market

Tenure conversion – sale of municipal housing

Inner city and suburb

Decreasing production of affordable housing Only for sale

What will happen with vulnerable families? A large group in public housing Especially in metropolitan areas

Remaining – social housing

Thank you for you

consideration

1 million Euro

30 000 Euro