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Finland: Expanses for home heating will be from 30 to 60% of all income already
  • According to a study commissioned by the Finnish Real Estate Association and the Homeowners Association and released on Wednesday, the share of housing costs in household disposable income will rise sharply this year.

    The increase in the cost of housing is due to the increase in the cost of energy, and for this reason, the dynamics of the cost of housing largely depends on the type of housing and heating.

    The share of housing and energy expenditures in household disposable income could exceed the 30 percent mark this year.

    According to the report, it will be especially difficult for those who live in private homes. The increase in prices will especially affect the households of pensioners living in private homes.

    According to the forecast, for example, the cost of housing a single pensioner in a house heated by fuel oil will amount to almost 60% of disposable income.

    Tenants in the best position.

    The increase in housing costs for homes heated by district heating varies greatly from city to city, as district heating is produced differently in different locations. In those cities where district heating is mainly produced using natural gas and coal, prices have risen sharply.

    • In the energy crisis, tenants are in a better position than owner-occupiers in the short term. PTT economist Vira Holapp estimates that landlords cannot fully pass on the increased costs to tenants.

    According to Jukka Kero, Chief Economist of the Real Estate Association, the rising cost of food and transport, as well as the cost of housing, are drastically reducing the purchasing power of households, so households will not be able to support the Finnish economy this or next year.

    “Households are strongly encouraged to understand the situation and adapt their activities, for example through energy conservation measures.”