ROT Deduction Increase Spurs Economic Optimism Among Swedish Craftsmen
The increase in the ROT deduction boosts demand and optimism among Swedish craftsmen.
Key Points
- • ROT deduction increased from 30% to 50% starting May 12, 2025.
- • Craft firms reported a 30% sales increase in May and June 2025.
- • Over 70% of craftsmen optimistic about economic conditions next year.
- • 40-50% rise in inquiries noted by Patrik Sjöblom from Nordbygg Konsult.
The Swedish government's increase of the ROT deduction from 30% to 50% of labor costs, effective May 12, 2025, is already having a significant positive impact on the construction sector. Reports indicate a notable rise in demand for craftsmen’s services, with local craft firms experiencing approximately a 30% increase in sales during May and June 2025.
According to the Hantverkarbarometern survey conducted by Beijer Byggmaterial, over 70% of craftsmen are optimistic about upcoming economic conditions, and 86% agree that the ROT deduction is crucial for the future of the industry. Additionally, a smaller survey conducted concurrently revealed that 29% of craftsmen expect an increase in orders within the next three to six months, showcasing a shift in market sentiment.
Patrik Sjöblom from Nordbygg Konsult noted a 40-50% surge in inquiries, leading to full bookings for up to eleven months ahead and prompting plans for hiring additional staff. The types of inquiries predominantly involve traditional ROT jobs, including extensions, patios, and both facade and roof replacements. This surge in demand aligns with the government’s aim to stimulate economic growth, particularly benefiting small to medium-sized construction firms as they navigate this period of recovery and expansion, further asserting the effectiveness of the ROT deduction policy in energizing the construction industry.