The Government continues its initiatives for those who are struggling most in the housing market

"The Government wishes to help those who are having the hardest time in the housing market. In 2012, we shall be continuing housing support, starting loans and the other good schemes we offer through the Norwegian State Housing Bank. The Government is prioritising social housing policy," says Minister of Local Government and Regional Development Liv Signe Navarsete.

The strategic work of the Norwegian State Housing Bank with local authorities with great social housing problems will be continued in 2012.

Housing support is important for helping those who have high housing expenses and a low income to meet their housing expenses. Housing support is targeted so as to help those who are most vulnerable in the housing market. It is estimated that in 2012, 128,000 people will receive housing support of around NOK 25,000 each during the course of the year.

The starting loan is a good instrument for helping young and disadvantaged people to establish themselves in their own homes. Demand for starting loans from the local authorities has been higher in the years since the financial crisis than previously. The Government proposes a loan ceiling of NOK 15 billion in the Norwegian State Housing Bank for 2012. Within this ceiling, starting loans will have the highest priority. The Norwegian State Housing Bank also provides basic loans for building and improving homes and loans to day nurseries. 

The Government proposes to phase out the special tax deduction for illness expenses. The funds thus released will be used to strengthen current schemes and subsidies for adapting homes will therefore be increased by NOK 23 million in 2012. This will make it possible for more people to remain in their own homes rather than moving into institutions.

The local authorities must have enough good homes for rent in order to be able to help the disadvantaged in the housing market. The Government proposes to increase the commitment quota for subsidies for homes for rent from NOK 404.6 million in 2011 to NOK 430 million in 2012. This will allow for about 1,100 homes for rent.

In order to achieve good results from social housing activities, it is essential to have sufficient, good knowledge about the challenges the local authorities face. The competence subsidy for social housing, which is administered by the Norwegian State Housing Bank, is vital for stimulating the acquisition of expertise and facilitating good social housing solutions. The Government proposes a commitment quota of NOK 77 million in 2012, an increase of NOK 7 million from 2011.

Area initiatives are important for preventing the accumulation of poor living conditions and lack of maintenance of homes and open areas. During the period from 2007 to 2010, the entire area initiatives were concentrated on a joint state-local authority initiative in Groruddalen. In 2011, initiatives were broadened to include vulnerable areas in Bergen, with grants of NOK 3 million. For 2012, it is proposed to double the area initiative in Bergen to NOK 6 million. It is also proposed to extend the area initiatives by NOK 1.5 million to include Trondheim. NOK 40 million is proposed for initiatives in Groruddalen.

For more information, contact the press centre at the Ministry of Local Government and Regional Development on: 22 24 25 00.