• Sweden edition
 

Housing reform would 'force 50,000 to move'

Published: 08 Sep 2008 12:17 GMT+02:00
Updated: 08 Sep 2008 12:17 GMT+02:00

In an article in the Dagens Nyheter (DN) newspaper, Swedish Union of Tenants (Hyresgästföreningen) chair Barbro Engman writes that every fourth tenant household in attractive parts of Stockholm, Malmö, and Gothenburg consists of low income earners.

“In reference to middle incomes, it’s been said that the inner city population consists of nothing but middle and high earners. But that doesn’t fit if you look at rental tenants in the inner cities," she writes.

"The inquiry claims that income levels in those areas where rents are going to be raised as a consequence of the proposal are so high that only a small number of households will be affected. This is wrong.”

If the inquiry’s proposal is carried most of these households – more than 50,000 according to Engman – would be forced to move.

She points to an analysis carried out by the tenants’ union using figures from Statistics Sweden as evidence for her claim.

“With the inquiry’s proposal, attractive parts of cities will be closed off to those with low incomes. Can we afford this in a country which is already fighting with ever more pronounced segregation and with the social tensions that come with it?” writes Hedman.

But an expert on Sweden's housing market explained that the issue of how best to move forward with reforms isn't so simple.

“It’s like choosing between the plague and cholera,” said Stellan Lundström, a professor in building and real estate economics at the Royal Institute of Technology (KTH),to the TT news agency in reference to the inquiry’s findings.

Entitled “The EU, the public good, and rents”, the report, which was released in April 2008, looks at possible changes to the Swedish housing market affecting both rental apartments as well as apartments for purchase managed by larger housing corporations.

The proposal has led to an ongoing debate about how to best organize Sweden’s unique utility value-based system for allocating rental housing, which relies on rents set by collective bargaining.

“On the one hand, it’s totally clear that if you implement a more market-oriented setting of rents, the rate of tenant changeover will increase. In inner-city Stockholm, among other places, there isn’t any changeover because of low rents. It’s impossible to move into the city from the outside,” said Lundström.

“On the other hand, if you do nothing, the entire rental stock will soon be turned into apartments for purchase (bostadsrätter). If you want to retain the current system with the common way of setting rents, there soon won’t be any rental apartments left in the inner city.”

TT/David Landes (news@thelocal.se)

Today's headlines
Science
Swedes discover rare Antarctic fossils

Swedes discover rare Antarctic fossils

Researchers from Sweden have been speaking about a rare discovery of mammal fossils in the Antarctic. READ  

Ukraine conflict
Sweden Democrats reject EU-Ukraine pact
The Sweden Democrats have two MEPs, seen here with the party's leader Jimmie Åkesson. Photo: TT

Sweden Democrats reject EU-Ukraine pact

BREAKING: The European Parliament has backed an 'historic' agreement to allow closer trade between the EU and Ukraine, but the nationalist Sweden Democrats were among those trying to block the deal on Tuesday. READ  

Elections 2014
Löfven to get no help from Sweden's Liberals
Liberal party leader Jan Björklund. Photo: Jessica Gow/TT

Löfven to get no help from Sweden's Liberals

UPDATED: Liberal Party leader Jan Björklund says he has no plans to join a government with the election-winning Social Democrats, as Sweden's political future remains uncertain. READ  

Analysis
'Evolution' for Sweden's crowd-funding scene
Photo: Victor1558/Flickr

'Evolution' for Sweden's crowd-funding scene

The Local checks out crowd-funding in Sweden as US giant Kickstarter announces plans to launch in Scandinavia. READ  

Opinion
Scandinavia and Scotland: closer links?
Brit Kester Gibson (left) thinks Scotland should split from the UK but Swede Mimi Coglianos disagrees. Photos: private

Scandinavia and Scotland: closer links?

Scotland votes on whether to become independent this week and the Scottish National Party has suggested closer ties with Scandinavia if the 'yes' camp wins. The Local asked two readers if they agreed with Scotland splitting from the UK. READ  

Sport
Malmö gear up for Champions League
Sweden's biggest club Malmö face Juventus on Tuesday. Photo:TT

Malmö gear up for Champions League

Malmö are the first Swedish club in the Champion's League for more than a decade but they face a tough debut fixture against Italian champions Juventus in their Group A opener. READ  

Sweden earthquake 'was strongest in 100 years'
The town of Mora, near where the earthquake hit. Photo: Shutterstock

Sweden earthquake 'was strongest in 100 years'

An earthquake measuring 4.1 on the Richter scale shook parts of central Sweden on Monday and experts have revealed it was the strongest in a century. READ  

Elections 2014
Löfven rules out making government with the Left
Left Party leader Jonas Sjöstedt. Photo: TT

Löfven rules out making government with the Left

Election winner Stefan Löfven announced on Monday that he would not form a government with the Left Party, a move that party's leader called a "huge mistake". READ  

Elections 2014
Six big headaches for Stefan Löfven
Stefan Löfven: a man with a lot on his plate. Photo: Sören Andersson/TT

Six big headaches for Stefan Löfven

Stefan Löfven has started talks to form a new government, but the former welder faces huge challenges in bringing together an administration that will work. The Local explains why. READ  

Business
Microsoft to buy Swedish Minecraft makers

Microsoft to buy Swedish Minecraft makers

UPDATED: Microsoft announced on Monday that it was buying Swedish company Mojang, which was behind the hit game Minecraft, for $2.5 billion (17.9 billion kronor). READ  

RECEIVE OUR NEWSLETTER AND ALERTS
Sponsored Article
How to start a business in Stockholm
Society
How I became a surf blogger when I moved to Sweden
Gallery
People-watching: September 13th
Society
Why is Stockholm's Södermalm so cool?
Gallery
People-watching: September 11th
Blog updates

15 September

Liten, litet, små & lilla (The Swedish Teacher) »

"Hej igen! Have you ever been confused about when to use “liten”, “litet”, “små” and “lilla”? Today I’m going to sort out how use the adjective “liten” (small) and the different forms of it. Liten or litet? “Liten” is the form we will use when referring to a noun with the gender “en”. For example: Min pappa har en..." READ »

 

12 September

EU sanctions: necessary, effective and timely (The Diplomatic Dispatch) »

"Regular readers of this blog know I’ve written about the Russia-Ukraine crisis here. Today I’ve chosen to share an article by the UK Minister for Europe, David Lidington, with my readers: This week the European Union imposed further sanctions on Russia. This decision followed months of destabilisation of Ukraine by Russia, and months of political..." READ »

 
 
 
Gallery
People-watching: September 13th
Politics
Five possible election outcomes
Politics
Sweden elections: How do they work?
Politics
Sweden elections: Who's who?
Lifestyle
What's on in Sweden
Gallery
Property of the week - Hornstull, Stockholm
Analysis
Five differences between the UK and Sweden
Welshman Jonny Luck is now a chef in Sweden
Society
How I opened my own restaurant in Sweden's Malmö
Sponsored Article
Stockholm tech fest: relive the magic
Gallery
People-watching September 8th
Photo: TT
Politics
Feminists fight for first seats
Politics
Immigration cut push from Sweden Democrats
Sheryl Sandberg says women have "low expectations"
Tech
Facebook exec talks women's limits in Swedish business
Politics
Left Party calls for justice and equality
Politics
Green Party wants 'better world' for kids
Lifestyle
The five best Swedish songs of the month
Sponsored Article
Introducing… Insurance in Stockholm
National
Huge clear up underway after Skåne floods
Politics
Sweden's Alliance reveals full manifesto
Tech
Sweden's highest peak to lose title next year
Politics
How immigration became a key election issue
Sponsored Article
Graduates: Insure your income in Sweden with AEA
Sponsored Article
Introducing...Your finances in Stockholm
Sponsored Article
Introducing...Housing in Stockholm
Latest news from The Local in Austria

More news from Austria at thelocal.at

Latest news from The Local in Switzerland

More news from Switzerland at thelocal.ch

Latest news from The Local in Germany

More news from Germany at thelocal.de

Latest news from The Local in Denmark

More news from Denmark at thelocal.dk

Latest news from The Local in Spain

More news from Spain at thelocal.es

Latest news from The Local in France

More news from France at thelocal.fr

Latest news from The Local in Italy

More news from Italy at thelocal.it

Latest news from The Local in Norway

More news from Norway at thelocal.no

857
jobs available
Swedish Down Town Consulting & Productions
Swedish Down Town Consulting & Productions is an innovative business company which provides valuable assistance with the Swedish Authorities, Swedish language practice and general communications. Call 073-100 47 81 or visit:
www.swedishdowntown.com
PSD Media
PSD Media is marketing company that offers innovative solutions for online retailers. We provide modern solutions that help increase traffic and raise conversion. Visit our site at:
http://psdmedia.se
If you want to drink, that’s your business.
If you want to stop, we can help.

Learn more about English-language Alcoholics Anonymous in Sweden. No dues. No fees. Confidentiality assured.
AA-EUROPE.ORG/SWEDEN