A home is many people’s biggest investment: strengthen housing company governance before a crisis

A housing company's financial problems do not usually begin when a bank turns down a loan. They often originate in decisions made years earlier. Demanding renovation and financing projects increasingly test the time and expertise of boards made up of shareholders. Hallitustuki proposes appointing a professional to the housing company's board as a solution.

Housing company governance is a significant issue for society, because for many Finns their home is the largest single purchase they will make. According to Statistics Finland, residential property accounted for 61 per cent of households' total assets in 2023, amounting to an estimated €500 billion*.

Maintaining a housing company's finances and creditworthiness requires sustained work. This includes preparing for repairs, monitoring finances and ensuring the board has the necessary expertise. When making financing decisions, banks assess matters such as the company's finances, maintenance history, plans and collateral. A plan on paper alone is not enough: for example, implementation of the maintenance plan is monitored.

Concerns about worsening loan terms

Housing companies are concerned about financing repairs. In the Finnish Real Estate Federation's spring 2026 renovation barometer, 59 per cent of respondents expected loan terms to worsen. However, fewer than two per cent of respondents had been unable to obtain any project financing.

Hallitustuki CEO Timo Metsälä says housing companies should more consciously assess whether their boards have enough time and expertise for the decisions ahead. A company puts itself in a difficult position if it postpones repairs without examining the consequences, or only considers financing once a renovation has become urgent.

"Housing companies hire professionals for electrical work and designers for demanding renovation projects. Preparing project decisions, understanding contracts and monitoring implementation also require expertise. That is why it is worth considering bringing a professional into the board's work too," Metsälä says.

A professional anticipates, prepares and follows up

Appointing a professional does not guarantee a loan or remove challenges relating to a property's location and market value. It can, however, strengthen the company's ability to identify risks early and prepare decisions based on the information available.

Hallitustuki offers housing companies chair and board member services.A professional elected to the board participates in decision-making and carries the statutory responsibility of the role. The work focuses on anticipating issues, careful preparation and following up agreed actions together with the rest of the board, the property manager and any specialists needed.

Hallitustuki does not provide property management or an advisory service outside the board. The professional serves as part of the board.

*The estimate of approximately €500 billion is calculated from a Statistics Finland table: average residential property assets of €169,429 × 2,950,000 households = approximately €499.8 billion. The figure covers all households' residential property assets, including detached houses and holiday homes, not only housing companies.

Hallitustuki's press release was also published on STT Info on 9 October 2026.

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