Abstract

Description sheet

Published by The Finnish National Rescue Association 13.6.2021

Authors

Title of publication

Laine Tuomas, Telaranta Kari, Lehto Lauri, Leino Ilpo & Pouta Jari Improving the safety of rental houses with technical solutions

Series and publication number

ISBN PDF

Website address URN

SPEK tutkii 24

978-951-797-708-1 ISSN PDF 2242-1653

Pages

101 Language FI

Keywords

cost-benefit analysis, fire safety, rental housing

Publisher

The Finnish National Rescue Association The Housing Finance and Development Centre of Finland Publication sales/ Distributed by The Finnish National Rescue Association

Abstract

As the coverage of institutional care and enhanced service housing is reduced, more suitable housing for the elderly will be needed. According to population projections, the proportion of people over the age of 65 will increase from the current just over 20 per cent to almost 35 per cent by 2070. The proportion of those with reduced functional capacity will thus increase. The shift in the focus of care from institutional care to homes is also creating pressure to reconsider the fire safety of homes. There are approximately 370,000 ARA rental apartments in our country subject to usage and transfer restrictions. Of these, municipal rental housing companies own about 220,000 apartments; in fact, they are the largest single owner of ARA apartments, accounting for about 60 percent of all ARA apartments.

Currently, residential properties have differing practices and ambiguities in the utilization of technologies that promote fire safety. The main challenge is older properties, where no renovations have been made or will not be carried out, in which case the improvements that improve fire safety will also not materialize. There is therefore a need to find out how the most cost-effective way to raise the level of security is at a time when the number of residents belonging to special groups is growing in the rental housing segment, but also in real estate in the form of limited companies.

The project examines how the safety of rental houses should be further developed and which means would be most effective, especially to promote fire safety. The study was conducted as a case study, in which three rental apartment complexes of different ages were selected, whose current fire safety solutions are being evaluated.

The study compared the cost-benefit relationship between different fire safety technologies, such as mains-connected fire alarms and stove safety devices, in a rental housing environment. Cost-benefit calculations were used to determine whether investing in fire safety technology would generate cost benefits for society. The direct and indirect costs to life, health and property, among other things, are assessed when assessing costs and benefits.

The study aims to answer the following questions: • What is the current situation regarding the technical fire safety of the rental houses under investigation? • Which solutions that promote fire safety are the most cost-effective in the areas under consideration? • Is there a difference in the cost-effectiveness of fire safety solutions between groups of residents?

Combining information on costs, disadvantages and effectiveness forms an overall picture of net benefits in euro terms. The accuracy of the calculation is indicative. It is suitable for evaluating different investments in terms of size in the presence of cost constraints, as well as for long-term consideration. In the long term, the calculation can be applied in, for example, different scenarios where the effects and assumptions of a decline in residents ’ability to function can be viewed as a return on investment.

The study concludes that the most cost-effective solution in the current situation would be to provide financial support for the installation and responsibility of fire alarms, fire extinguishers as well as cooker alarms or stove guards. Stove alarms or guards and initial fire-fighting equipment may also be effectively supported separately without the obligations of the property owner. However, with fire alarms, it would be advisable for the property owner to take responsibility for them.

If the share of people with special needs (“special groups”) in the population increases, the cost benefits of a hob guard and sprinkler system will also increase further. Thus, it would be advisable to install active safety devices, such as a stove guard and, in high-risk areas, an automatic fire extinguishing system, especially in housing targeted at special groups, such as senior homes and the like.

Keywords: cost-benefit analysis, fire safety, rental housing