Finland Information
Joined: 21 Oct 2006
Posts: 18
Home Country: finland
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 Posted: Tue Nov 07, 2006 4:00 am Post subject: HOUSING IN FINLAND/ FINLAND HOUSING GUIDE |
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HOUSING IN FINLAND
GENERAL
Housing in Finland is generally new or recent, and of good quality, with all modern conveniences. Home ownership rates are high. Both housing projects and individual homes tend to be small-scale by international standards.
Finland has an adequate number of homes overall: at the end of 2003 there were about 500 housing units per 1,000 inhabitants. Housing markets are clearly differentiated in different parts of the country, however.
Helsinki, and to a lesser extent certain other growth centres, are suffering from housing shortages, high housing prices and high rents, while in most municipalities the housing market is balanced, or there may even be an oversupply.
Small-scale housing dominant
The most common residential buildings are blocks of flats (accounting for 44 % of all homes in 2003) and detached houses (40 %). Terraced “row houses” have become more popular in recent years, particularly in urban areas.
Blocks of flats are normally limited in size, and tend to be well spaced in green surroundings, providing a pleasant residential environment.
Good quality housing
Finland’s housing stock is very new overall, with 60 % of all dwellings built since 1970. Practically every home has piped water, and 96 % of homes have hot water on tap. Most homes are connected to local sewerage systems, and 96 % have flush toilets.
Some 93 % of all homes are equipped with central heating systems. Buildings are insulated so well that annual energy consumption per cubic metre for heating is of the same order as in countries considerably further south. District heating schemes are widespread, and produce almost half of all the heating energy used in buildings in Finland.
Small homes and small households
Although there have been dramatic decreases in occupancy densities, there is still less housing space per inhabitant in Finland than in most EU countries: in 2003 there were 1.7 rooms and 36 square metres of housing per person on average. This is mostly due to the high proportions of smaller housing units in the housing stock: around 44 %of all homes had just one or two rooms, and 42 % had 3-4 rooms (excl. kitchen).
Finnish households also tend to be relatively small: at the end of 2004, the average size of households was 2.14 persons and over 72 % of all households consisted of only one or two persons.The number or small households had increased by more than a third since 1990. This trend has led to a high demand for small homes, especially in the rental sector.
Two-thirds in owner-occupancy
Two-thirds of Finland’s housing stock consists of owner-occupied homes, and home ownership is widespread in all forms of housing, including apartments as well as detached houses and row houses. Housing companies are a very typical form of housing management in Finland, accounting for approximately half of all owner-occupied housing. Most housing companies are small, and manage a limited number of properties. Residents own shares of the housing company, have representation on the board, and pay a monthly fee towards maintenance costs.
About 32% of the housing stock was rented in 2002. Half of the rental housing in Finland consists of “social housing”, meaning that it is subsidised by the State or provided by the local authority, while the other half is market-financed.
New forms of ownership and tenure have recently been established between owner-occupied and rental housing. These include, for example, right-of-occupancy housing and different forms of partial ownership.
Low variation in housing expenditure shares
On average, people in Finland spend under 17 % of their disposable income on housing. Young people and single-parent households spend the largest share, 25-27 % on the average. In general, tenants spend a higher proportion of their income on housing than home-owners. Housing allowance schemes help to ensure that most households’ housing costs are kept down to reasonable levels.
Rented housing
There are around 800,000 rented flats in Finland, of which about half have been built using finance from the national ARAVA loan scheme or interest subsidy loans. These flats are owned by local authorities or non-profit-making organisations.
Tenants are eligible for State-subsidised rented accommodation according to their need, their income and their financial circumstances. Rents are set to cover the costs of providing the housing, including capital construction costs and maintenance expenses.
Half of the rented apartments in Finland are privately owned, and have been built without State subsidies. Rents in the private sector are determined by market forces.
Controls over the tenancy of flats built under the ARAVA and interest subsidy loan schemes ensure that such flats remain in the rental sector in the long term at reasonable rents, so that the benefits of subsidies are enjoyed by tenants.
Separate legislation controls private rental agreements, with conditions related to reasonable rent levels and how rent increases may be imposed.
FINDING A HOUSE OR APARTMENT (ASUNTO) IN FINLAND
Accommodation in Finland is usually in an apartment, and free-standing houses are rare in cities. For people arriving with prearranged work it is often possible to organise at least temporary accommodation through the employer. Many companies own apartments for the specific purpose of short-term use by employees, and some offer long-term contracts as well.
If your employer cannot help with accommodation you will probably have to try the free market, whether through advertisements in the newspapers (generally Sunday editions) or through an agent. Occupancy rates are high, particularly in Helsinki, and finding housing can be time-consuming. Agents' fees are average to high by international standards, so renting directly from the owner is the cheapest option. If you have a network of friends/colleagues, pass the word on that you are looking for housing - many apartments disappear through word of mouth before they ever reach the newspapers/agencies.
Online Searches: Etuovi.com offers a Finland-wide property search, including both private and agents' listings. In Helsinki, the newspaper Helsingin Sanomat provides a similar service. Unfortunately these sites are only available in Finnish but they are quite simple and can be used with a rudimentary knowledge of the Finnish language. For a fee you can also advertise in the Helsingin Sanomat that you are seeking accommodation.
Agencies: There are many agencies offering property for long-term rental (usually 1-year minimum) or for sale. Several large agencies which offer an online, Finland-wide property search are listed below. Commissions to agents vary but it is not unusual to pay the equivalent of one month's rent plus tax (currently 22%).
Banks, Insurance Companies and Foundations: Banks have vast amounts of information available on accommodation, house hunting, funding and mortgages, right-of-occupancy properties, part-ownership properties and renting. Many banks, insurance companies and foundations also own properties that they let out.
TENANCY AGREEMENT
When renting a property it is common to pay two months' rent as a security deposit, plus the first month's rent in advance. Rent is usually paid monthly and cannot be increased during the term of the agreement; these conditions should be included in the agreement. So long as the apartment is maintained in good condition the deposit is returned in full at the termination of the agreement. Typically, the tenant´s term of notice is one calendar month and the lessor´s term of notice is three months. If a Finnish tenancy agreement has been valid for more than a year, the lessor´s term of notice is six months.
Contents of Rental Property
When signing the agreement make sure you understand what is included in the deal. In Finland the situation is very different to Australia, for example.
When you move in to a rented property, do not expect to find:
* light fittings (except bathroom and perhaps kitchen)
* carpets / carpeting
* curtains
Do expect to find:
* a refrigerator, and often a freezer
* an oven
* water payments to be included in the rent
Electricity
Once you have signed the agreement, contact the local electricity provider to have the account switched to your name. This can be done by telephone.
In Helsinki:
Helsingin Energia (English, Finnish, Swedish)
Tel: (09) 6171
Fax: (09) 617 2360
ADDRESS NOTIFICATION
Once you find a place to live (or if you change your address) you will want to be able to receive your mail directly! You should notify the post office of your address. This can be done by telephone, at your nearest post office, or online at Posti.fi
If you go personally to the post office you will also be given postcards for informing your new address to your friends and relatives in Finland (cards and postage free of charge).
Post office locations available from the Posti Call Centre:
For consumers:
0200 27100 (local charge/mobile phone charge)
(Mon-Fri 8 a.m.-8 p.m., Sat 9 a.m.-2 p.m.)
For businesses:
0200 75000 (local charge/mobile phone charge)
(Mon-Fri 8 a.m.-8 p.m., Sat 9 a.m.-2 p.m.)
INSURANCE
It is common for a lessor to require that the tenant purchase insurance on the apartment. Contents insurance is reasonably priced in Finland and can be obtained from many companies
Source: Expat Finland |
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