A new construction law in Finland, which exempted backyard buildings from requiring permits, has resulted in a 30-40% decrease in building permit applications across municipalities. This reduction has led to substantial financial losses for local governments, prompting many of them to raise their permit fees. The legislation, known colloquially as the 'backyard sauna law,' has also introduced new requirements, such as climate assessments and increased demand for construction consultations, further adding to municipalities' costs.

For example, in Siuntio, the number of building permit applications has dropped by over 30%, as reported by the municipal building control manager Patrick Köhler. A similar pattern is noted in the neighboring municipality of Inkoo, where building activity has also been significantly affected. The law was designed to encourage outdoor building activities, particularly the construction of saunas, but has inadvertently led to budgetary strains for local authorities, as they grapple with reduced income from permit fees.

Local government officials, like Paula Mäenpää from the Association of Finnish Local and Regional Authorities, have expressed concern about the long-term effects of the new law. The rising permit fees are seen as a necessary response to compensate for the financial shortfall created by the law's unintended consequences. Policymakers may need to reconsider the implications of such regulations to balance encouraging building activity with the financial health of local governments.