The Swedish government announced Thursday that it proposed to improve housing market in its autumn budget by increasing housing supply.

The government aimed to shortern processing time for construction application and to relax regulations on building student apartments so as to increase the insufficient housing supply at the moment, according to a statement.

It is included in the plan that the government would make it cheaper for construction companies to follow related standards and regulations of the European Union. Measures would also be taken to encourage private property owners to rent out their houses and apartment to meet the great demand in housing market.

"There is a considerable housing shortage in Sweden and therefore we have to take advantage of the apartments that we already have," said Stefan Attefall, Swedish Minister for Public Administration and Housing.

With better and clearer regulations, security would be created for both sides who rents out the apartment and who rents it, he added.

Besides, the government would lower the present property levy, especially that of apartment buildings, of which tax would be reduced to 0.3 percent from the beginning of 2013 when the new regulations is expected to come into force.