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A recent study by the Finnish Homeowners’ Association (Omakotiliitto) reveals a general decrease in housing costs across Finland, primarily due to a significant drop in electricity prices. However, other household expenses continue to rise, with some municipalities experiencing sharp increases.
On average, housing costs have fallen by 405 euros (6.2%) from the previous year, attributed largely to an 11.7% decrease in electricity prices, benefiting around forty localities.
The study, covering property tax, electricity, water, and waste fees in a hundred municipalities, shows a contrasting trend of expenses other than electricity continuing their upward trajectory.
The drop in electricity prices by 18% from the previous year has notably contributed to the decreased housing costs. The price for energy in current contracts ranges between 8.5 to 20 cents, depending on the locality and provider.
Marju Silander, Director of Operations at Omakotiliitto, notes, “We use the price of an ongoing contract for electricity in our analysis. However, some consumers are still paying significantly higher prices, for example, if they are locked into an expensive fixed-term electricity contract.”
Varied Changes Across Municipalities
Raasepori witnessed the most significant decrease in municipal and regional fees, saving up to 2,430 euros, whereas Rantasalmi experienced the highest increase of 1,063 euros. In Rantasalmi, not only electricity but also water and waste fees have surged significantly.
Excluding the electricity energy price component, municipal and regional charges have risen more sharply. Waste fees have seen a remarkable increase of 47%, property taxes by 6.5%, and water fees by 5.5% compared to last year.
Silander highlights the case of Rantasalmi as a regrettable example of the combined effect of decisions related to housing costs. “Decisions are made in silos without considering the overall impact, forgetting that high living costs diminish residents’ purchasing power.”
Significant Variations Persist Between Municipalities
Parainen tops the list with the highest housing costs at 7,091 euros per year, followed by Sastamala, Järvenpää, Kemiönsaari, and Lempäälä. On the other end, Pietarsaari emerges as the most affordable, with yearly expenses amounting to 4,484 euros, leading Seinäjoki, Kauhava, Forssa, and Loimaa as the next most economical locations.
The disparity between the cheapest and the most expensive municipalities stands at 2,607 euros annually, narrowing down from last year’s gap of 3,785 euros. Excluding electricity costs, the gap has widened slightly to 1,480 euros from the previous 1,400 euros.
Concerns Over Property Tax Reforms
The property tax reform outlined in the government’s program is a particular concern for Omakotiliitto, especially after the recent increase in the minimum property tax rate, impacting Helsinki and Espoo the most with more than a 200-euro hike.
Development of Bio-Waste Collection
With the highest water fees in Parikkala and the lowest in Kempele, water costs have risen significantly in Rantasalmi and Liperi. Waste management fees, now including bio-waste collection, show the highest charges in Raahe and Sysmä and the lowest in Tampere and its neighboring municipalities.
Silander emphasizes the importance of developing efficient bio-waste collection solutions across all regions to mitigate costs. “Technical solutions exist for cost-effective collection, and they should be utilized.”
Conducted for the eighth time, Omakotiliitto’s survey aims to increase transparency in housing expenses, using a standard 120 square meter electrically heated single-family home on a 1,000 square meter plot for the comparison.
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Source: www.helsinkitimes.fi
