The average annual rise will be 3.1 percent until 2017, according to the survey which was conducted by Pellervo Taloustutkimus on behalf of the Finnish Real Estate Federation and the Finnish House Owners’ Federation.
Homeowners will see increases of 3.3 percent per year while renters can look forward to increases averaging 2.5 percent. The difference is down to future increases in interest rates factored in to the calculations.
The research covers the country’s 21 largest towns, with both mortgage payments and maintenance fees taken into consideration. They found that the bulk of the increases was caused by maintenance fees, energy bills and rent, rather than high property prices or interest rates.
Capital costs climb highest
The report uncovered large regional differences in the cost of accommodation. A 60 square metre flat in Helsinki will cost residents an average of 950 euros per month, while in the cheapest locations of Rauma and Kouvola a similar apartment would come in at around 600 euros.
The same two towns also have the cheapest small apartments, with a 30 square metre abode costing 400 euros per month there compared to around 630 euros in Helsinki. A 120 square metre, electrically heated detached house in the capital city region costs an average of 1,900 euros per month, while in Pori or Kouvola a similar residence would be just 900 euros.
Pensioners living in a 90 square metre terraced house that they own can expect to pay around 500 euros per month in living costs in the capital region or Tampere, while a similar property in Oulu or Rauma comes in at under 400 euros.
Renovations drain resources
The survey found that a typical renovation costs each household an extra 60-240 euros per month, and that the typical repayment period for debt taken on to finance large renovations—such as plumbing, heating or external façade work—is 15 years. Smaller repairs usually entail a similar monthly payment but a repayment period of around five years.
Helsinki property is also more expensive to maintain, with repairs in the capital region costing nearly twice as much as they would in smaller towns.