Crucial decision for a better rental property market (SE)

The European and Swedish Property Federations welcome the Swedish Parliament's decision to adopt the bill, Municipal housing companies and reformed rent rules. The new legislation and legislative amendments come into force on 1 January 2011. "The abolition of the municipal housing companies' normative role for rent setting is very welcome, as is the requirement for them to be operated on commercial principles.


The old regime discriminated strongly against private investors and landlords.

"The old regime discriminated strongly against private investors and landlords, which of course includes all 'foreign' investors and landlords on the Swedish market. The legal complaints filed by the European Property Federation (EPF) to the European Commission have played a major role in the Swedish government's considerations," said Michael MacBrien, EPF director general.

"These changes will contribute to a better functioning rental market to the benefit of all who want to live in rental apartments. The decision also marks a fundamental milestone in a constructive process between the Swedish Property Federation,, the Swedish Association of Municipal Housing Companies and the Swedish Union of Tenants to modernise the rental market", said Reinhold Lennebo, president of the Swedish Property Federation.

Under the new rules the municipal housing companies shall operate on commercial conditions and their normative role for setting rents will be replaced by a system where any collectively negotiated rents become normative. The Swedish Property Federation will become a full partner in negotiations and the rents they are negotiating will have the same legal significance as the municipal housing companies' rents.


Reinhold Lennebo, President Swedish Property Federation

A continuation of the local models currently used is also made possible by a change in the rent negotiation law and a rule will be designed to protect against excessive and rapid rent increases. The latter will however take into account the possibility of direct rent increases following standard improvements.

"The reformed rent rules open new opportunities to offer housing that the residential tenants ask for, but also places demands on us as an organization to handle the new role," sai

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