FI Warns of Rising Fees for Housing Associations as Costs Climb

Many housing associations have been forced to raise fees in recent years. The Financial Supervisory Authority (FI) warns that costs may continue to rise.

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FI Warns of Rising Fees for Housing Associations as Costs Climb
Photo: Mickan Mörk/TT

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A new report from FI shows that the average fees to housing associations increased by 5 percent last year compared to the year before. Over two years, the fees have risen by nearly 15 percent.

The fee to the housing association is often a very large part of the household's economy. The associations are also affected by the interest rate situation since they often have high loans, says Daniel Barr, Director-General of FI.

Alarming signs

The background to the increased fees is, according to FI, among other things higher interest rates and that operating costs have risen with inflation.

The authority is now warning that the upward pressure may continue to increase for many housing associations, despite the fact that interest rates have fallen slightly.

You have to be prepared for it. Partly, there are alarming signs that inflation is about to take off again, and it is likely that housing associations have more fixed-rate loans that have not yet fallen due, which must be re-negotiated at a higher interest rate, says Daniel Barr.

The loans have increased

FI is also warning that rental income for associations with premises may decrease due to the recession.

FI's report also shows that the average loans per square meter for housing associations have increased since last year. On average, the loans per square meter usually amount to 6,000 kronor. Last year, the sum had increased to 7,200 kronor per square meter.

In newly formed housing associations, the loans were on average approximately twice as large as in existing associations.

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By TTEnglish edition by Sweden Herald, adapted for local and international readers

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