Home » News » Minister against student housing requirements: – They have a lot of money

Minister against student housing requirements: – They have a lot of money

This summer, students all over the country have faced challenges in the search for housing in their student town.

The private rental market has been under great pressure and Samskipnadene do not have enough student housing to cover demand.

On Tuesday, it became known that closer 17,000 students are on a waiting list for a student accommodation this year.

The associations believe that the state must contribute more to start the construction of more homes. At the same time, the responsible minister, Ola Borten Moe (Sp), questions the actual need for government financial aid.

On break

The state covers approximately one third of the price for new student accommodation, if it falls below the cost limit of around one million kroner. It is too low for possible construction projects today, according to the Norwegian Confederation of Trade Unions.

– Then we have to choose between not building, or building without subsidies, with the consequence that the rent for the students will be higher than it needs to be, says chairman of the Cooperative Council, Hans Erik Stormoen.

The student union in the capital, SiO, has previously stated that this could mean approximately NOK 1,000 more expensive rent for future dormitories.

Higher Education Minister Borten Moe does not rule out that it may be appropriate to increase the cost frame, but cannot understand why the students risk footing the bill.

Will check the finances

– It is a real challenge that the cooperatives build far fewer homes than what the Storting allocates money for. They generally have a lot of money, and have a total equity of many billions of kroner, he says.

He adds that he would like to find out how the student housing economy actually stands for the associations.

The Minister of Higher Education says he will look at the cost framework before the state budget is presented.  Here from the Center Party's national meeting last year.  Photo: Odd Arne Hartvigsen / TV 2

The Minister of Higher Education says he will look at the cost framework before the state budget is presented. Here from the Center Party’s national meeting last year. Photo: Odd Arne Hartvigsen / TV 2

– I think they earn a lot of money, which they spend on other good causes that the students decide for themselves. But I am interested in getting the homes we allocate funds for built.

He wants to challenge the co-operations on this in the time to come.

– Strange

Chair of the student association Sammen på Vestlandet, Amalie Lunde, believes the minister’s statement is special.

– It is strange that he should speculate on our intentions regarding housing construction and whether we are doing this to get a lot of money. Our profit goes back to the students and mainly housing, says Lunde.

According to the Ministry of Education, the 14 co-operations in Norway ended 2021 with a total annual result of NOK 334 million.

– The same 14 student cooperatives had a total equity of over NOK 5 billion in 2021. We have received these figures from the Directorate for Higher Education and Skills, the ministry states in an email to TV 2.

Lunde believes this surplus is absolutely necessary to be able to maintain the quality of the student housing and at the same time keep rent low.

FIGHTING BACK;  Sammen's chairman, Amalie Lunde, will ensure that the association's profits go to the right purpose.  Photo: Ørjan Andreassen

FIGHTING BACK; Sammen’s chairman, Amalie Lunde, will ensure that the association’s profits go to the right purpose. Photo: Ørjan Andreassen

– We want the students to feel comfortable where they live. Then we cannot set up lots of housing and let the standard correspond to an apartment from the 70s.

– Why can’t the cooperatives pick up the bill for more expensive rent, when there is extra money on the books?

– In the long term, it will not be possible. Ola Borten Moe must see the whole here.

– Bad solution

Also the chairman of the samskipnad in Tromsø, Hans Petter Kvaal, says that it would be a bad solution for them.

– Then the entire profit would disappear and we would not be able to withstand the big waves such as an interest rate increase, says Kvaal.

His proposal is again to increase the cost limit the government has set.

– It doesn’t help how much money I have in my pocket, when the cost frame is as it is.

Borten Moe has told TV 2 that he will assess the case and will come back with a decision in connection with the national budget in October.

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