Sweden’s central bank, the Riksbank, and the Financial Supervisory Authority (Finansinspektionen) are pushing for tougher amortisation requirements in order to curb household debt but Green Housing Minister Peter Eriksson is hesitant, given that the property market is starting to balance.
The National Board of Housing, Building and Planning (Boverket) has said its forecast that 76,000 homes will be built in Sweden in 2017 will not be realised. Ericsson is not concerned, however, saying: “Even if “just” 70,000 homes are built this year, it is still more than last year. And it is only a couple of years since Boverket said we could not build more than 40,000 homes a year.”
A drop in the number of expensive homes under construction is not a problem. On the contrary, it will allow more affordable homes to be built, argues the minister, who does not hold with analysts who warn of a price collapse. “The Swedish economy is strong, unemployment is falling and global growth is also strong. There is little to suggest that prices will collapse,” he says