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Sweden faces housing crunch despite government building plan

Strict regulations, a lack of capacity in the construction sector and political deadlock hamper plans and reforms

For Mr Lofven's minority government, which faces an election in 2018, a failure to seriously dent the shortage may become a political handicap, given that housing construction was one of his main campaign promises.

Mr Lofven's plans to build 700,000 homes to ease a shortage of dwellings may be pie in the sky, industry officials and analysts say.


IT is one of Swedish centre-left Prime Minister Stefan Lofven's signature policies - building 700,000 homes in a decade to ease a shortage of dwellings that has businesses worried about attracting employees and policy makers fearing a property bubble.

But Mr Lofven's...

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