Housing investment funded by ROT-money

At a press conference yesterday, the government announced that it will invest in small, cheap apartments for young people.The proposal, which is part of the government’s proposed budget for next year, is to be paid for by tax revenue saved from the decrease in the renovation and maintenance tax-deduction (rot-avdrag). TT reports that the government will allocate SEK 3 billion annually to real estate companies who build small, cheap apartments for rent. The funds are predicted to provide 15,000 new apartments each year to the 150 Swedish municipalities with housing shortages. The proposal is in line with the government’s ambition to build 250,000 new homes until 2020. Ulf Kristersson (M), claims the government has made a “double-mistake”, by first “removing something one knows works fine”, he said, referring to ROT, “and investing in something one knows does not work at all”, he told SvD.