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Riksdag allows flat owners to set rent

The Swedish parliament has voted through a change in housing policy that will allow cooperative flat owners to cover not only the cost of their coop fee but also their mortgage costs when they rent out their homes

Riksdag allows flat owners to set rent

The centre-right government has long wanted to give flat owners more flexibility in what they charge when the rent out their homes.

The proposal, which was voted through parliament on Wednesday with a slim margin, could ease the housing crunch by offering a financial incentive to rent out unused flats, the government argues.

Critics fear it will undermine Sweden’s cooperative model of housing.

The different changes to Sweden’s housing laws proved so controversial in the last few months that the government had to build an unusual alliance on the floor of parliament.

Its MPs had to rely on the support of the minority Sweden Democrats, usually a pariah party rather than a political partner, to get a majority.

The Sweden Democrats abandoned the government, however, on one specific proposal that wanted to take away the cooperatives’ right to veto a tenant who wanted to rent out his or her flat.

Usually, such permission is given only when a tenant is working or studying in a different city or country for a specified time, or if a tenant wants to give living with a partner a trial-run.

MPs were evenly split 169 to 169 when they voted on the proposal, in effect stalling it.

TT/The Local/at

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PROPERTY

Swedish property market on steady upward climb

Is the Swedish property market coming back to life after a long period of hibernation? Recent figures suggest as much.

Swedish property market on steady upward climb

Swedish property prices rose for the fourth consecutive month in April – 5.8 percent since the turn of the year and 1.7 percent compared to the previous month, according to state-owned mortgage bank SBAB.

The price of a detached home rose 1.9 percent in April compared to March, and apartments rose by 1.2 percent.

SIX MISTAKES TO AVOID:

It’s not unusual for the property market to perk up in spring, but there’s a clear increase even adjusting for seasonal effects. 

“Summed up since the turn of the year, apartment prices have risen by over 7 percent. Even the estimated trend shows a clear increase, in other words prices are rising more than you would expect given the time of the year,” said SBAB chief economist Robert Boije in a statement.

A major reason behind the price increase is the expectation that Sweden’s central bank, the Riksbank, has stopped raising the country’s main interest rate and the hope that it might even cut the rate in its next announcement, which will come next week.

While this is expected to bump up the price of buying a property, it is on the other hand also likely to lead to lower mortgage rates.

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