Right of occupancy housing in Finland


Right of occupancy housing in Finland

Policies and regulations
Promotion and production
Ownership and tenure

Main objectives of the project

Right-of-occupancy housing [1] is a mix of renting and homeownership. Under this model the occupier must first pay a right-of-occupancy payment, generally amounting to 15 per cent of the purchase price.



  • Promotor: Housing Finance and Development Centre of Finland (ARA)


Continent: Europe
Country/Region: Finland


This can be used as security for a mortgage and attracts mortgage interest tax relief. In addition, the residents also pay a monthly residence charge for their right to occupy the dwelling. Right-of-occupancy housing is also subject to a monthly residence charge to cover capital expenses and upkeep costs. The amount of the residence charge is based on the cost recovery principle and may not exceed the average market rents of similar dwellings in the same locality. Right of occupancy dwellings can never be bought outright but the occupier has the right to live there permanently.

There are restrictions on the resale of right of occupancy housing. These dwellings can only be sold to a buyer approved by the local municipality. When occupiers of a dwelling of this type decide to give up their right of occupancy, they receive a refund of their right-of-occupancy payment, plus an index increment corresponding to the change in the building cost index.

Anyone aged 18 or older may apply for a right-of-occupancy apartment. There are no income restrictions, but applicants cannot own another dwelling in the same region or have the funds to purchase one. This form of housing has been financed mainly with state-subsidized housing loans or interest subsidy loans.