Building boom at risk

Banks’ new mortgage requirements on buying newly produced residential property and Brexit threaten to overturn forecasts for the building of new housing, warns Ola Månsson, MD of the Swedish Construction Federation (Byggindustrier, BI). The Federation said in its June forecast that the construction of 56,500 new homes will start this year, a clear increase compared to 47,300 new housing units last year.

At the same time the National Board of Housing, Building and Planning (Boverket) has said that 710,000 new homes will be needed over the next ten years, and 440,000 of these already by 2020. This means that an average of 88,000 new homes will need to be build every year.