ESA approves Norwegian scheme for affordable homes in Oslo

The EFTA Surveillance Authority has today approved a Norwegian measure for affordable homes in Oslo.

During the past 30 years, there has been a significant increase in housing prices in Oslo. This has led to a situation where people's chances of entering the housing market depend on theirsocioeconomic background, and therefore to greater social inequality.

The objective of the measure is to provide more people with the opportunity to own a home in line with the Norwegian ownership policy, which aims to give people a more stable living situation and to create social equality.

The measure will be administered by the Agency of Real Estate and Urban Renewal within the Municipality. The measure will have a duration of 20 years and an estimated of 500-1500 number of homes will be built.

The Agency will sell housing for a price corresponding to 80% of the market value. There are three different purchase arrangements covered by the measure, namely direct sale, the alternative ownership solutions of part-ownership, and rent-to-own. The aim is that the applicants will build up equity through payments and price increases, which may in turn qualify them for the ordinary housing market.

The measure will only be available for people that fulfil certain qualification criteria. Amongst others, qualified applicants must have an income and a level of wealth below certain thresholds. Furthermore, the people benefitting from the measure cannot already own a home.

In order to ensure the fair selection of qualified applicants there will be prioritisation criteria. The prioritisation criteria will for example look at who is most in need, age, local affiliation, local employment and diversity.

Read ESA's decision here.

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