The Finnish Competition and Consumer Authority (the “FCCA”) published a report on removal of barriers to entry in the market for house building in the metropolitan area. According to the FCCA, the scarcity of building plots, plot allocation terms that favor large construction firms as well as the strict regulation reduce incentives for small and medium size construction firms to enter the market in the metropolitan area. Problems occur especially within the state supported rental apartment production, where completing building projects at the regulated prices and conditions is difficult. The FCCA found that in the metropolitan area demand constantly exceeds supply resulting in price increases of both old and new apartments. According to the report, the scarcity of the supply derives particularly from land use and public regulation. Furthermore, house building is regulated more strictly in the metropolitan area than in other parts of Finland. According to the report, the key factor to increase the supply is to attract new players into the market by removing barriers to entry. The FCCA’s study relates to the Government Program regarding housing policy and the promotion of healthy competition. Source: The Finnish Competition and Consumer Authority 11/3/2013