RCA News

Stockholm (Stadsmission) City Mission: The flat-pack solution to the housing problem

Written by Luke Cottrell | 15-Oct-2024 11:35:50

RCA were privileged to be hosted by Alexandra Berg and Thomas Bjarke of the Stockholm Stadsmission (Stockholm City Mission), the 150 year old NGO tackling poverty and helping to end the Swedish housing problem.

The non-profit organisation was founded in 1893, with a mission to relieve severe poverty in Stockholm. It operates second-hand stores, social supermarkets, reworked fashion brands and support centres, all contributing to an impressive 620,000,000 SEK (£46million) annual revenue. This revenue has allowed Stadsmission to recently embark on a new and even more ambitious mission to revolutionise the Swedish housing problem. Their totally unique “Kymmendö Model” (named after an island in the Swedish archipelago) offers a new way of tackling the changing face of homelessness, which is increasingly affecting working families, young people and the elderly.

Their 2024 Homelessness Report[1] shines a light on “hidden homelessness”, as a broadening term to encompass young parents who work, vulnerable elderly and children growing up in hostels and B&Bs without access to decent affordable homes. It’s an experience not unique to Sweden; in 2024 the number of homeless British households exceeds the population of Nottingham[2]; at some 320,000.

Housing supply in Sweden is very constrained and particularly so in the cities. Whilst rented homes are the norm in these areas, they rarely become available due to the way rents (and rental increases) are protected. As a result, rented homes are often far too expensive for many middle and lower income households who will be forced to pay ‘black market’ sub-let prices. This can trap many people in a cycle of poverty which is difficult to get out of as so much of their income is spent on keeping a roof over their heads.

The Kymmendö Model is both financially and socially unique with a focus on long-term sustainability, with residents needs at its core. Constructed in 2022 after acquiring the land from the city, with outline consent 2 years earlier, the 40 dwellings (36 flats and 4 townhouses) were designed by KOD Architects and constructed by Wastbygg in partnership with FB Bosta. Alexandra and Thomas were keen to tell us the build was completed ON TIME AND ON BUDGET (an experience perhaps more unique to Sweden).

The completed block is owned by the Stadsmission real estate company and leased to a Co-operative Tenancy Association at an affordable rate. This enables reduced rents to be passed down to its approximately 100 residents (first occupied in June 2024) at 3 tiers of rent.

Mixed tenure affordable housing isn’t a new concept and is common in the UK, but the Kymmendö Model differs by offering subsidised steps of rent based on individual circumstances. Residents are chosen based on a holistic range of “soft values” that cater to individual circumstances, rather than a more binary priority scoring, as is the UK approach. Residents in Tier C are offered a “basic rent” level (we would term “market rent”) and are important for making the scheme financially viable, whilst also offering a secure and fair deal. Whereas Tier B residents pay 85% of basic rent, and Tier A pay 76%.

These homes are beautiful, with high-quality finishes that are light and bright. We noticed that windows curiously open inwards and doors open outwards (we’re told for improved thermal insulation). Sleek exteriors and bright open interiors create peaceful and supportive spaces, offering a safe haven whilst offering flexibility with storage spaces that can be used as extra bedrooms and/or workspaces; empowering residents. Above all, the Kymmendö Model offers decent homes and a much-needed sense of dignity. Residents also benefit from a number of community based facilities, including communal pergola gardens, resident’s common room, office and onsite support officer.

The Kymmendö Model nestles perfectly into an established suburban neighbourhood on a disused site and is by all accounts tenure blind in its quality and appearance; something the English planning system already aims to mirror.

Where the Kymmendö Model differs itself again is by increasing rental levels over time, aiming for all residents to staircase up to Tier C rents, with full coverage across residents within 15 years (a similar vein to UK Shared Ownership, but for rental). At this point, the Stadsmission becomes a typical market (or “basic”) rented block, and aims to roll over its income into a new site, to repeat the process all over again. The Kymmendö Model will have then transitioned into a fully scalable ‘flat-pack model’ for affordable rental, which can be replicated throughout Stockholm - such is the Swedish way! In doing so they will have established a sustainable mixed community of residents, made possible through an innovative and financially responsible vehicle.

RCA would like to thank Stockholm Stadsmission for their time sharing the details of the Kymmendö Model, which we hope with a bit of missionary work, could be packaged up and rolled out across the UK.

We wish Alexandra, Thomas and the entire Stadsmission team the best of luck, and hope that in the next 15 years, their “mission” will have been a success.

[1] https://www.stadsmissionen.se/press-och-opinion/hemloshetsrapporten-2024

[2] https://www.housingtoday.co.uk/number-of-homeless-households-exceeds-population-of-nottingham/5132005.article