A small municipality reports on the aftermath of the 'yard sauna law': workload increased, revenues dropped by tens of thousands
A new construction law in Finland has led to a significant decrease in the number of building permit applications, resulting in financial losses for small municipalities like Siuntio.
The new construction law in Finland, which has been in effect for just over a year, aims to simplify the permitting process, allowing for the construction of small structures like yard saunas without the need for a permit. In the municipality of Siuntio in Western Uusimaa, the impact of this law has been noteworthy. According to Patrick Köhler, the municipality's construction supervision chief, the number of permit applications has dropped by over 30%. During the pandemic years, Siuntio experienced a construction boom, with over 150 permits granted annually. However, following the new law's implementation, applications fell to under 100 in the last year, leading to significant financial challenges for the local government.
As a direct consequence of the reduced permit fees, the municipality has suffered a loss of tens of thousands of euros, forcing it to increase its fees by approximately 30%. While some municipalities are experiencing a 50% drop in building permit requests, the workload for construction supervision has paradoxically increased. This influx can be attributed to the rising need for local governments to adapt to the changing regulations while still managing existing requests and projects, leading to a strain on their resources.
The implications of this shift highlight the challenges faced by local administrations in balancing simplified regulations with financial sustainability. Smaller municipalities, particularly those relying on permit fees for revenue, may need to explore alternative funding sources or adjust service delivery models, potentially affecting local development and services offered to residents. The situation in Siuntio serves as a microcosm of these broader challenges, showcasing how legal reforms can have unintended economic consequences at the local level.