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Sweden’s student union warns that housing shortages are back this semester

Students in Sweden are facing acute problems getting flats and rooms this year, with shortages of student housing returning to pre-pandemic levels, according to a new report by the Swedish National Union of Students.

Sweden's student union warns that housing shortages are back this semester
Some 383 new student flats have been built at Fäholmaskogen in Kärrtorp in southern Stockholm for this autumn semester. Photo: Chris Anderson/TT

The housing squeeze follows a few years of temporary relief during the pandemic, when more students were studying remotely and not moving to their university towns and cities. But according to the annual housing report from the Swedish National Union of Students (SFS), as on-campus studies have returned to pre-pandemic levels, so have student housing shortages.

Of the 34 university or college locations where SFS maps the student housing situation, six areas received a worse result in this year’s report than it did last year.

The changes are tracked using a colour-coded system: green means students can receive an offer of accommodation within a month, yellow means that an offer comes within a semester, and red means a housing offer takes more than one semester. The report found that 61 percent of students live in a city that has been designated a red ranking.

International students are not insulated from this shortage. Hülya Bakca, a Turkish woman studying at Lund University, cancelled her student housing in Malmö, which she received through the university’s accommodation provider.

She had moved to Malmö late, because her classes in the first half of the autumn 2021 semester were online, and she could not afford to pay rent for an apartment she was not using.  While she then found a room in an apartment shared with two other people, she said her rent, at 5,400 kronor, not including wifi, is too high.

“I have the smallest room,” she told The Local. “The room is facing a busy road and it is noisy. I am not happy about it.”

There is no privacy, she added, as insulation problems mean that sounds from both outside and inside the apartment are audible, while the landlady lets herself in whenever she wants without prior warning. 

Bakca tried looking for a new place to live in the summer, when she expected it to be easier to search for an apartment as students left Lund and Malmö. She looked once more for shared accommodation to lower her costs. One apartment was covered in the toys of the prospective flatmate’s child.

“All the shared place was just his kid’s toys and stuff,” she said. “It was everywhere, you could just step on it. Legos, dolls.” Rent was 5,000 SEK, and did not include electricity.

Another potential flatmate was an older man, whose living room was strewn with alcohol bottles, and who told Bakca about his previous tenants, including a 19-year-old woman and a 25-year-old-woman. Rent here was 4,500 SEK, all included.  

After months of searching, Bakca gave up on her housing search, and now plans to move in with her partner when her current lease expires.

According to the report, student housing across Sweden was converted into other types of housing during the pandemic, when demand for student accommodation dipped. Rising construction costs are also contributing to the student housing shortage, as is the removal of governmental support for the creation of low-cost housing.

Meanwhile, a secondary housing market, in which first-hand leaseholders sublet their housing, pushes up rental costs further, eating into students’ already tight budgets.

As well as a housing shortage, students are also facing high rents.

“Students are among the societal groups who spend the highest share of their income, about half, on housing costs,” the report found. 

This year’s downgraded locations include Borås, Jönköping, and Eskilstuna, which have gone from green to yellow, and, Karlskrona, Malmö, and Uppsala which have gone from yellow to red. Lund, Gothenburg, and Stockholm have never received anything but a red rating since 2009, even during the pandemic, highlighting a persistent lack of housing in the three cities, all of which are popular destinations for international students.   

In its report, SFS demands action to address the housing shortage. This call for action is divided into three points: a reintroduction of government subsidies for new construction, a reform of housing allowances for students, and more streamlined checks to ensure that student housing is allocated to active students.

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INTERVIEW: ‘Most foreigners in Sweden don’t know they can get back excess rent’

In Sweden, people subletting apartments are not allowed to charge more in rent than they themselves pay. But foreign subtenants don't always know this. We asked Roland Sjölin, lawyer at the Swedish Tenants' Association, about how to get back excess rent.

INTERVIEW: 'Most foreigners in Sweden don't know they can get back excess rent'

More and more of the people asking the Swedish Tenants’ Association, Hyresgästföreningen in Swedish, for help with excess rent are foreigners, Sjölin told The Local in an interview.

“The problem is that if you’re coming from another country, and you’re subletting an apartment, you’re probably not familiar with the rules in Sweden, because in other countries, it might be okay to overcharge your tenants.” 

He said that clients from India in particular seeking help from the association were now “very common”. 

“Many people come here to work as engineers in the IT sector and then have to rent somewhere,” he said, adding that as a group Indians appeared to be “very aware of their rights.”

Sweden’s rental sector is heavily regulated, with first hand contracts negotiated between landlords and the Tenants’ Association, and the rent that can be charged for second-hand contracts limited to only a small fraction above what the first-hand renter pays. 

“You’re not allowed to make any profit subletting an apartment in Sweden,” Sjölin explains. “You can only charge the subletting tenant the same rent as you [the first-hand tenant] are paying to your landlord, and then you can add the costs for internet and electricity, and perhaps a parking lot, if that is included.” 

Tenants’ Association lawyer Roland Sjölin. Photo: supplied.

You can also add a påslag or “markup”, if you are renting out the apartment fully furnished, but this cannot exceed more than 15 percent of the rent. 

That doesn’t mean that most landlords follow the law. The competition for rental apartments, especially in Stockholm, is so intense, that unscrupulous sublet landlords often try to get away with charging well over the legal amount, charging what is known in Sweden as ockerhyra, or “excess rent” and hoping that their tenants are too desperate to complain.  

What many foreigners do not realise is that even after the rental period is over, they can still get back any excess rent they have paid by applying to the Rental Board or Hyresnämnden, which functions like a court judging rental disputes. 

“If you have the evidence then it’s fairly easy,” Sjölin said. “I get a new case every second week on repayment of unfair rent, and I think that I win most of them.” 

“Nowadays, you can get paid back excess rent up to 24 months back in time, so people tend to get more money,” he added. “In some cases, they can get 200,000 kronor. In other cases, perhaps it’s only 30,000 kronor or 60,000 kronor. It depends on how long you have rented the apartment, and how excessive the rent you’ve been paying has been.”

The first step is to establish what would have been a fair rent, either by asking your landlord what they themselves pay directly or by checking with the Tenants’ Association.

“Because we negotiate most rents in Sweden, we normally know what the firsthand rent is,” Sjölin explained.

Then you need to collect together your evidence.

“It’s a good thing to have a written contract and also papers from your bank showing that you paid rent every month, and perhaps photographs of the apartment, so the rental board can get an idea of the apartment you were renting and what would be a fair rent, and also the termination for the contract so you can show the court how long you’ve been living in the apartment.” 

But Sjölin underlined that since Sweden has free burden of evidence, none of this is essential. 

“Even if you’ve been paying in cash, if you have witnesses who can testify what you were paying each month, you still have a chance of getting your money back. It’s a bit more tricky, but I’ve won two cases like that this year.” 

People in Sweden, he explained, tend to wait until the rental period is over before seeking to get paid back excess rent rather than challenging their landlord while they are still living in the apartment. 

“You don’t have any legal protection for your home for the first two years, so if you bring the matter up with the person you’re renting the apartment from you risk losing your contract and having to move out, so most people wait until they’re supposed to move anyway,” he said.

If you apply to the rental board for a refund close to the day you move out, you can then make your landlord pay back all excess rent paid in the 24 months leading up to the date you contacted the rental board.

If you are a member of the Tenants’ Association, you can contact them and ask for help with your application, but there are also specialist companies, like Orimlig Hyra AB who will buy your case off you and give you a refund within 48 hours, saving you a long wait in exchange for a cut of the money reclaimed. 

Sjölin said that the rental board normally took about 8 months to come to a judgement, but that if the person with the first hand contract appeals, that could extend the waiting time by between six months and a year.

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