The chair of Húseigendafélagið (the Homeowners’ Association) fears that the simplification of regulations could lead to even more defects in new buildings. She says it is important to proceed carefully.
The chair of Húseigendafélagið says it is important to proceed carefully when simplifying housing regulations so that such changes do not lead to even more construction defects.
The government presented new housing measures last week. Among them is a major simplification of the regulatory framework.
“We believe it is extremely important that if oversight is being simplified and changes are being made at the same time as research is presented showing that 40% of new buildings have construction defects, then this must be addressed,” says Hildur Ýr Valsdóttir, chair of Húseigendafélagið.
Such changes cannot [must not] result in less oversight and an increase in building defects, so we think it is of great importance to proceed carefully.
She says that simplification of regulations must not result in reduced supervision or an increase in construction defects, and that it is therefore crucial to proceed with care.
She considers it positive that a building defect insurance scheme is to be introduced.
The government also announced that construction supervision will be transferred from municipal building officers to professionals working under the umbrella of independent inspection agencies.
Hildur says it is important to ensure that this does not lead to higher costs for contractors, as that would drive up the purchase price of new buildings.
That might then run counter to the housing package being proposed.
Rents rise when landlords are squeezed
Hildur also fears that measures targeting landlords could lead to higher rents. According to the government’s plan, tax exemptions on capital gains for owners of multiple apartments will be reduced, and tax discounts on rental income will be cut.
The rental market in this country is such that the majority of landlords are individuals, and they presumably do not want to lose out on renting, at least to break even or make some profit, so when they are squeezed it generally leads to rent increases.
Source: Ruv.is
