General housing allowance will no longer be available for owner-occupied homes starting 1 January 2025

December 2024 will be the last month for which general housing allowance is available for owner-occupied homes. After that, general housing allowance will no longer be paid for housing costs for owner-occupied homes, such as maintenance charges, maintenance costs for a single-family home and interest payments on housing loans.

Kela will stop paying housing allowance for owner-occupied homes automatically. The affected households do not have to take any action. This change will take effect on 1 January 2025.

The change does not apply to right-of-occupancy or part-ownership homes. General housing allowance will continue to be available for such homes. However, in the case of right-of-occupancy homes, interest payments on housing loans will no longer be recognised as housing costs. This change will also take effect on 1 January 2025.

The changes to the general housing allowance do not apply to the housing allowance for pensioners. Customers who are unsure which benefit they receive can check this in the decision on housing allowance or contact Kela.

The following types of housing are also counted as owner-occupied housing

A home is considered an owner-occupied home even if there is a rental agreement for the home, if

• the home where a self-employed person lives is held by a company or real estate corporation and the self-employed person owns at least 50 percent of the company
• the household owns at least 50 percent of the home
• the home is in joint ownership.

The home is also counted as an owner-occupied home when the household is responsible for the housing costs in a similar way as for owner-occupied homes. If for instance a beneficiary of an estate lives in a home owned by the estate and is responsible for the housing costs in a similar manner to an owner, the home is considered an owner-occupied home. General housing allowance granted for such homes will also be ended.

What can customers do if they do not have enough money for the housing costs?

If the customer's income and assets, after the housing allowance has ended, are not enough to pay for food, housing and other necessary living expenses, the customer can use the calculator for social assistance to estimate if they are entitled to basic social assistance. Please note that the calculator only provides an estimate.

The social assistance is affected by the applicant’s and the family’s incomes, savings and assets. However, an owner-occupied home where the applicant lives permanently is not counted as an asset. Basic social assistance is not available for repayments of housing loans.

If the customer needs help with debt problems, the customer can contact the legal aid office for financial and debt counselling (oikeus.fi) or the Guarantee Foundation (takuusaatio.fi).

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Changes in the general housing allowance