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Why the cost of home renovations in Norway is rising

Norway can be one of the priciest countries in Europe to renovate, even if you do it yourself, and the cost of home improvements is rising due to the soaring prices of one crucial material.

Why the cost of home renovations in Norway is rising
Home improvement costs in Norway are rising. Photo by Brett Jordan on Unsplash

Home improvement projects in Norway can really leave a dent in your personal finances for a number of reasons.

To start, there’s the increased cost of labour due to high wages in Scandinavia. 

Then, certain rooms can only be worked on by professionals and must be completed to a specified standard, meaning you can’t do it yourself. Bathrooms, as an example, cost an eye-watering amount to have renovated: between 200,000-300,000 kroner, due to the requirement for them to be done to wet-room standard. 

Consumers in Norway are now feeling the pinch even more as the average price of timber has skyrocketed by 65 percent over the past year, according to Statistics Norway’s construction costs index

Several factors are driving the rising prices of timber. These include extensive bark beetle outbreaks in Canada and across Europe, which has led to a worldwide shortage of timber.

The shortage has been exasperated by increased demand in Norway and various knock-on effects of the coronavirus pandemic. 

“The reason for the price increase is first and foremost an imbalance between supply and demand and strong competition in international markets,” Heidi Finstad, administrative director of Treindustrien, which represents the wood and timber industry in Norway, told public broadcaster NRK

“The second part of the explanation is that the cost of running production has increased significantly during the pandemic. It involves personnel costs related to sick leave, transport costs,” Finstad added. 

But what has this meant for consumers? In short, this means that the rising prices of raw materials and increased operating costs during the Covid-19 pandemic have been passed on to them. 

“When the costs go up, it’s the customers who end up with the bill,” Tronde Lingjerde, who runs timber company Alltid Tjenster, explained to NRK. 

This has led to many delaying their home-improvement projects until a later date. 

“There are certainly people who have changed their minds and decided to wait with their projects until the prices go down,” Lingjerde said. 

So will prices go down once supply catches up to demand and the pandemic is gone? 

“When the situation normalises, we can expect prices to go down again a bit. Not necessarily to the level it was before, but at least with a bit more normalisation,” Thomas Iversen from the Consumer Council told NRK. 

EXPLAINED: What do Norway’s rising house prices mean for you?

“From our side, it seems as if price growth over the past year is due to extraordinary circumstances in the global timber market. It should stabilise when things return to normal,” he explained. 

Despite forecasting that prices would go down, Iversen said that those looking to make a few home improvements should budget for higher prices regardless. 

“Consumers who are going to build or refurbish should budget in the event that prices remain high in the future. You shouldn’t budget for lower prices,” he told NRK.

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RENTING

Landlord or tenant: Who pays for white goods in Norway when they break?

Aside from being expensive to replace, white goods can cause significant disruption when they break down. So, does the landlord or tenant pay for the cost of replacement?

Landlord or tenant: Who pays for white goods in Norway when they break?

Ovens, fridges, and washing machines—there’s never a good time for them to break down. Sometimes, it can feel like they’ve chosen the worst time possible to pack in.

Unless the rental contract says otherwise, the Tenancy Act will determine how maintenance of the home will be distributed between the tenant and the landlord.

Unless otherwise stated in the contract, the tenant is responsible for maintaining items like smoke detectors, taps, furniture, and loose fixtures.

Things like fridges and washing machines that belong to the landlord can also be the tenant’s responsibility to maintain.

If the goods are integrated into the kitchen, the landlord is generally responsible for repairs and replacements.

Then, there is the responsibility for why something has broken down. If the tenant has broken it, even by accident, the tenant must replace it.

Even if you may be required to cover the maintenance, it may be worth asking the landlord how old the appliance is (to determine how worn down it is) and whether there is still a warranty on the product. If there is a warranty, you can have it repaired or replaced without either party shelling out.

If the breakdown is due to a freak accident that neither party is responsible for, then it is down to the landlord to cover the bill.

However, if an item that the tenant must maintain is so worn or damaged that it may be cheaper to buy a new one than repair it, then the landlord must replace it. Therefore, if the fridge or oven gives out and it would be cheaper to buy a new one, this is the landlord’s job.

The responsibility to replace the goods also means paying for any other associated costs and fixing the logistics. If an oven needs replacing, the landlord must order it. They may contact you to ask for measurements, wish to come around, have someone take measurements, or look at the problem.

If they wish to come to the rental property to take measurements, they will still need to follow the rules for coming—i.e., pre-arrange it with you. If they live outside the country, they may have someone come on their behalf.

Some goods will need an electrician to install them, while others can be installed by the landlord or yourself. If the landlord is responsible for replacing the goods, they are responsible for installation.

If the goods have an output of less than 25 amps and has two-pin plugs, then you can install it yourself if you feel comfortable. If the goods have a higher output, then a professional will need to install it.

Having a professional install the goods is essential for insurance purposes. This is because if insurers can prove the goods weren’t properly installed, you won’t receive any coverage in the event of a fire.

If you use a professional, then the landlord must pay. This also typically means that the bill must be sent to them if they aren’t present when work is carried out. However, you may come to an alternative arrangement whereby they pay you back.

Getting rid of broken white goods is more of a grey area. Thankfully, most outlets offer a recycling service when new goods are delivered. If not, it might be the tenant’s responsibility.

READ ALSO: How to legally dispose of unwanted furniture or white goods in Oslo

What if the landlord doesn’t fix things quickly enough?

The landlord is required to respond to issues with the home in a reasonable amount of time. There isn’t really a suggested time limit for replacing white goods.

However, you will need to factor in time for correspondence, ordering the goods, finding a delivery slot, arranging a time for the landlord to come around, and ordering an electrician. Therefore, even if they are on the ball, it could still take at least a week, if not more.

But if they really start to drag their feet, you have a number of options. You can issue verbal and written complaints, and if the landlord hasn’t fixed the issue within a reasonable time, you can take matters into your own hands and then bill them for the expenses incurred. You may also be able to claim a rent reduction.

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