New legislative changes aim to accelerate housing construction in Norway

Bjørvika - Houses - constructionPhoto: Ole Berg-Rusten / NTB
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The Norwegian government wants to amend the Planning and Building Act to speed up housing development.

Minister of Local Government Nikolai Astrup (H) says that the changes will affect both developers and municipalities.

“The problem today is that housing construction in newly regulated areas takes too long. Especially in larger cities such as Oslo, we have a housing shortage that contributes to strong price pressure,” Astrup told newspaper E24.

The proposed legislative changes would establish a new financing system for parks, roads, water and sewage, and other infrastructure that must be in place in new residential areas.

Current system

According to Astrup, the current system makes the process unpredictable.

“Today, developers who enter an area early must pay for large parts of the infrastructure themselves, while those who come after do not have to pay. It gives a bad incentive – developers are reluctant to go into new areas,” he said.

There have also been conflicts between developers and municipalities over which infrastructure needs are required for housing construction. 

The bill is sent for consultation.

Source: © NTB Scanpix / #Norway Today / #NorwayTodayNews

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