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Large differences in municipal housing companies’ guarantee fees

No uniform method is used to calculate guarantee fees for municipal housing companies. Instead, there are large differences in how the fees are calculated. This is according to a new report from the Swedish Competition Authority.

Municipal housing companies are to be run according to commercial terms. This means that guarantee fees are also to be set on a commercial basis. The Swedish Competition Authority has mapped the 100 largest municipal housing companies and can confirm that there are substantially large differences in how the guarantee fees are set in different municipalities.

“Even if there are no formal requirements on how guarantee fees are to be calculated, it’s still unreasonable to arrive at such different results when it involves similar operations that are measured,” says Rikard Jermsten, Director General of the Swedish Competition Authority.

The objective of the report is to indicate the differences that exist when different municipalities calculate guarantee fees for their municipal housing companies. No proposals are presented in the report.

“I am assuming that the different actors can themselves take appropriate action. We contribute by preparing factual documentation in our report,” says Rikard Jermsten.

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Last updated: 2021-05-07

Press release27 december 2019