Europe's news in English

COPY LINK

PROPERTY

Sharp increase in tenant-owner evictions

An increasing number of tenant-owner occupiers are being evicted from their properties, with a 107 cases reported in 2010 to date.

Published: 8 November 2010 15:46 CET

A total of 1,016 cases for eviction have been submitted to Swedish rental tribunals during the first ten months of 2010, of which 103 have come from tenant-owner associations (bostadsrättsföreningar).

“If the trend continues over the remaining two months of the year then it would mean an increase of 70 percent in comparison with 2009,” said P-O Brogren at the Swedish Union of Tenants (Hyresgästföreningen) to the Metro daily.

During 2009, Swedish rent tribunals received a total of 1,026 eviction applications, of which 73 came from tenant-owner associations.

Brogren explained that one obvious explanation was that the total number had increased, but he added that “tougher attitudes from tenant-owner associations” are also a factor.

Regional rent tribunals in Sweden mediate on a number of areas of dispute relating to domestic premises and business premises.

If a dispute arises between a tenant and a landlord or between a tenant-owner association and a tenant-owner occupier, and the parties cannot themselves agree, the regional rent tribunal may mediate in the dispute.

Dispute may, for example, relate to the conditions, transfer or subletting and in some cases the tribunal would also make a decisions on certain issues, for example, the right to sublet an apartment.

The tenant-owner occupier model is the most common form of apartment ownership in Sweden. A buyer in fact acquires a share of the association, while in practice they buy the permanent ride of abode in a specific apartment within the properties formally owned by the association.

The tenant-occupier then contributes a monthly payment towards paying heating and other collective bills for the building, as well as helping to service loans taken out by the association to purchase or upkeep the building.

Grounds for eviction include non-payment of the monthly fee, repeated disturbance, or subletting without the permission of the association’s board.

Member comments

Log in here to leave a comment.

Become a Member to leave a comment.

Why buying property in Austria remains unaffordable for most

Many people living in Austria dream of one day owning a home, but despite recent drops in property prices and interest rates, this dream is still out of reach for many average earners.

In Austria, it is recommended to not spend more than 40 percent of a monthly income on debt repayment.

But new analysis by tariff comparison portal durchblicker.at reveals that even a double-income household would need to spend around 60 percent of their income to afford a 90m² new-build apartment in Vienna.

While the government has created initiatives to improve the affordability, with attractive housing packages, fee reductions and eliminations of certain fees, such as the “Grundbucheintragsgebühr” (land register entry fee) and “Pfandrechtseintragungsgebühr” (mortgage registration fee) for properties up to a certain value, their impact has been limited.

Furthermore, the governments initiatives often overlook the specific needs of lower-income households and may benefit those who are already financially stable, leaving the average earner still struggling to afford a home, according to Der Standard.

READ ALSO: ‘Haushaltsversicherung’ – How does Austria’s home insurance work?

High prices, rates and strict lending criteria

One of the biggest barriers to owning a home in Austria is simply the sky-high property prices. Over the years, property prices have increased, making it more difficult for people with an average income to afford a place of their own. Even with recent minor dips in prices, they still remain high.

Another factor making owning a home challenging is the increase in interest rates in recent years. As a result, both existing variable-rate loans and newly obtained fixed-rate loans have become more expensive. Analysts expect the European Central Bank to cut interest rates by around 0.5 percent in the near future, but according to durchblicker’s calculations, this would initially only create a little relief for loan takers, where instead of around 60 percent, 55 percent of monthly household net income would be needed for debt repayment.

Another issue preventing many from realising their dream to buy a home is the difficulty in obtaining a mortgage. Since July 2022, stricter rules have applied in Austria for the granting of property loans. Loan applicants must have a deposit worth at least 20 percent of the value of their property to be granted a loan, according to the financial online platform Finanz.at. This means that even applicants with higher incomes may struggle to get their dream financed.

Furthermore, many loan takers with variable-rate loans, especially those recently obtained, are facing significant challenges. The variable interest rates have increased significantly since the initiation of these loans, resulting in higher monthly repayments, reported Der Standard.

Few people can afford their own home in Austria, especially in Vienna. Photo by Christian Lendl on Unsplash

Experts suggests fixed rate loans and cooperative housing models

Andreas Ederer, Head of Banking at durchblicker.at, recommends loan takers with variable-rate loans to change to fixed-rate loans. He suggests that fixed-rate loans have become more attractive as they are currently cheaper than variable-rate loans, reported Kurier.

Unlike fixed-rate loans, which have a steady interest rate throughout the loan term, variable-rate loans can change over time in response to shifts in market conditions or the economy.

Experts also suggest alternative models for increasing affordability. One idea is to create more opportunities for cooperative ownership with mandatory purchase options. This could offer a more affordable option where costs such as maintenance and taxes are shared. According to Der Standard, cooperatives also often have access to loans with better terms.

READ NEXT: How can I move into affordable cooperative housing in Vienna?

Url copied to clipboard!