Government proposes spending billions for new rental housing

With an annual SEK 3.2 billion investment, the red-green government wants to make it easier for private and municipal building firms to build smaller rental apartments.

The support is expected to add 15,000 new rental units per year. In order for building firms to receive support, certain criteria must first be met - the target municipality must have a housing shortage and at the same time population growth.

The apartments will have a maximum rent, which vary depending on where in the country they are and how expensive they are to build.

Green Party Housing Minister Mehmet Kaplan told newspaper Aftonbladet that the support is needed to help those with lower income find housing.

"Housing being built now is either condominiums or expensive rentals. There is a need for cheaper apartments for students and young people," Kaplan said.

The money to pay for the program is slated to come from the suspension of the ROT tax cuts, which gave tax cuts for housing renovations.

On Tuesday the proposal was submitted for review.

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