Reader’s letter This is a debate entry, written by an external contributor. The post expresses the writer’s views.
In line with the difficult situation that appears on the housing market these days, we clearly see that there is a type of housing that stands out. There are a lot of apartments, terraced houses, blocks of flats and large building plots sold with a so-called building clause, or in other words, homes where the owners themselves cannot choose what the house they are going to build should look like or what layout they should have – unless they choose from a directory.
Is there no one who see that it is a win, win situation if the municipality regulates itself, sells plots at a higher area price and residents can build what they want at a lower overall price than what you pay today for a catalog house?
The classic example where it is said that a developer is able to deliver a cheaper home than what you can build yourself for is a truth with modifications. We see that today’s national regulations, Norwegian standards and the municipality’s strict requirements and rules set such guidelines that even the aesthetics of the houses become monotonous. That is because it is not economically viable to build anything other than a square brick of one variety or another. Construction joints and technical requirements for a home are now so brutally regulated that in the end we are not allowed to build anything ourselves and the regulations must decide what we will live in.
But it is precisely here, the sale of plots without a building clause is unique. You can then make use of local players who are only one to five people instead of the 100-300 people that large developers have. The profit for the same job will then be significantly greater for the small players and they can offer a much lower price. When there is no construction clause, the customer can also help with their own efforts. Such as assembling furniture, painting, transporting goods, ordering, cleaning, etc.
A corresponding construction cost NOK 25,000 – m2 is not unrealistic when you build yourself. Whereas for a developer there is rarely money in something that sells for less than NOK 40,000, -m2. This means that if you build yourself, you can even make money by refinancing when the building is finished. The comparison here is not apples to apples so land price will play a big role.
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If the municipality takes seize and stimulate this market, we will get a more diverse house portfolio, greater influx of families with children, spread the buildings towards the outskirts that need relocation and attract an expanded offer for small players in the municipality. In other words, balance the market more than it is today. As of today, there are only 12 plots of land in Holmestrand municipality without a building clause.
INP won unanimously decision that the municipality should always look at the possibility of regulating and selling individual plots without a building clause where it is expedient.
With a municipality who have financial challenges, there are large sums to raise for the municipality and good money to save for the residents, as well as an opportunity to stimulate the market for small players. The new construction situation in Norway is now at a tipping point, where redundancies, resignations and reductions in the percentage of vacancies are a fact. Doesn’t the municipality owe us to work hard to give the residents a good one?
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