• Sweden edition
 
Government says yes to making subletting easier

Government says yes to making subletting easier

Published: 12 Apr 2012 15:28 GMT+02:00
Updated: 12 Apr 2012 15:28 GMT+02:00

Homeowners will in future not need permission from the local housing association (Bostadsrättsföreningen) to rent out their apartments, while real estate taxes have also been reduced by 630 million kronor ($93.1 million) to speed up the construction process.

“We have a situation where we have small margins in the Swedish economy,” said Fredrik Reinfeldt in a press conference, wrote TT news agency.

“But most analysts are predicting that there can be a little more speed in the Swedish economy by 2013.”

He stressed that the investment in the property market was aimed at increasing labour mobility and open to short-term accommodation opportunities, without having to hire on the black market.

The new proposals come in the wake of a government inquiry submitted last month, investigating why home owners in Sweden were reluctant to sublet their apartments.

Currently, owners of tenant-owner apartments (bostadsrättlägenheter) in Sweden must first request permission from the board of the local housing association before subletting a flat.

Furthermore, flat owners aren't free to charge whatever rent they'd like to prospective tenants, but instead can only charge what is considered "reasonable" rather than a rent that is in line with actual costs of ownership.

One change proposed by the government was that the local housing associations’ permission will not be needed when an apartment is rented out second hand.

Annie Lööf, the leader of the Centre Party, was also present at the press conference, and stressed that the proposals were not only intended to increase the labour mobility, but also the housing supply.

She said the effort would lead to general improvements in the multi-housing market renting rates and that property taxes will be reduced from 0.4 to 0.3 percent. Furthermore, the maximum amount for a property tax has been cut from 1400 to 1200 kronor.

”If you look at an average student room it could mean that the rent goes down by one percent,” Lööf said, according to TT.

In leasing an apartment, the landlord can charge the cost of the monthly fee and associated capital costs. If the owner lowers the loan, then a lump sum basis shall apply.

This, according to Reinfeldt, will affect the supply, as many people today may not receive payment for their actual expenses when they sublet.

Stockholm’s housing market is such that you can buy a really expensive tenant-owned place for eight million kronor. And then the fee can be low, maybe a few hundred kronor,” said Reinfeldt.

The Prime Minister also stated that limiting the amount of apartments that housing associations can rent out will be the government’s “big proposal” in the Spring Budget plans.

While not giving exact figures, Reinfeldt estimated that around 20,000 homes will be now rented out in light of the new proposals, and 400 new apartments built per year due to the tax cuts.

However, not everybody is impressed with the new proposals. Ulla Andersson of the Left Party claims that reducing the property taxed will lead to new homes.

“I find it hard to see how it will lead to housing construction,” she said in a statement to TT.

TT/The Local/og (news@thelocal.se)

Don't miss...X
Left Right

Your comments about this article

16:40 April 12, 2012 by EtoileBrilliant
I'm no expert at this but isn't there a fiscal issue for Bostadsrätt about the maximum percentage (I think it's 15%) by area that can be given over to commercial or investment property.

Can anyone shine a light on this?
18:00 April 12, 2012 by Swedishmyth
How about the government "letting" private property be private. By what right do they interfere with renting and mutually agreed upon fees to begin with? Or perhaps they never saw homes as private property in the first place?
18:30 April 12, 2012 by Frobobbles
They should prohibit subletting instead. It's chaos out there, a large part of the population can never get a proper flat because others are hanging on to their old ones.
18:45 April 12, 2012 by engagebrain
People buy property on the basis that the neighbouring flats are owner occupied and, with minimal consultation, changes the rules for private associations. This is big intrusive government.
21:10 April 12, 2012 by robbz23
@Frobobbles Actually in this case by subletting I think they mean homeowners renting out apartments. It was confusing for me too because I think of subletting to mean a person who has rented an apartment then turning around and renting it to someone else. Which I agree I think they should restrict because it causes so many problems finding first hand apartments in big cities like Stockholm.
05:55 April 13, 2012 by Jeff10
The gov't shouldn't tell private HO associations what rules they may have in their by-laws. This should be determined by the members of the HOA. If a member disagrees, the member may sell the home.

If a HOA's rules allows for the renting homes, then the gov't shouldn't have any say in what is charged for rent.

To paraphrase Thomas Jefferson, one of the authors of the US Declaration of Independence:

'A gov't that has the power to give to you anyting, also has the power to take from you everything.'
07:00 April 13, 2012 by dusanka
Finally a right thing to do!! Now we foreigners who live here in Stockholm will be able to sublet an apartamnet and pay dearly to the owner.Up to now it was such a pain in the ass like nowhere else on this planet.

We are totally thankful to those who changed whatever rule that was to make our stay here in this great country absolutely fantastic!

Thanks guys,

kisses
09:23 April 13, 2012 by B Slick
Bad idea! There is a big difference between renting and owning. Renters pay their rent and care about nothing else. Owners care because someday they will want to sell their apartment, so they care about their apartment and the area around it. LET RENTERS RENT AND OWNERS OWN BUT DONT MIX THE TWO TOGETHER!!
09:43 April 13, 2012 by animal_politicum
It should be noted that Swedish law is constructed so that while you might own a house you may not directly own an apartment in a house but only indirectly as a member of the Bostadsrättsförning which owns the house; hence the restrictions of the rights of the individual owner of an apartment and the need for authorization to sublet by the board of the Bostadsrättsförning. In many other countries people own the apartment directly and are not subjected to such restrictions.
23:45 April 13, 2012 by skylarkpilot
Swedish law is an ass ! You either own property, in which case you should be able to do with it what you like, or you don't. Sweden has to be one of the craziest countries in the western world.
Today's headlines
Sweden Floods
Flood chaos continues with more rain forecast
Photo: Johan Nilsson/TT

Flood chaos continues with more rain forecast

UPDATED: Sweden's floods are set to continue over the weekend with the national weather agency predicting more rain for some of the affected areas. READ  

Elections 2014
Reinfeldt better at handling a crisis: Poll

Reinfeldt better at handling a crisis: Poll

Prime Minister Fredrik Reinfeldt's hopes for remaining in office have been given a boost after more Swedes said they trusted him to handle a crisis compared to election rival Stefan Löfven. READ  

Gaza & Robin Williams: Swedes' Google habits
Actor Robin Williams. Photo: AP

Gaza & Robin Williams: Swedes' Google habits

The internet search giant has revealed what Swedes googled most over the summer period with the top 10 made up of diverse search topics ranging from sport to wasp stings READ  

Dad jailed for assaulting his infant twin sons
Photo: Jessica Gow/TT

Dad jailed for assaulting his infant twin sons

A man in central Sweden was sentenced to prison for aggravated assault on Friday after doctors noticed that both his twin sons had sustained serious and unexplained injuries. READ  

Swedish city all set for six-hour workday trial
Clocking in. File photo: Shutterstock

Swedish city all set for six-hour workday trial

Officials finalized plans on Friday for the "Gothenburg guinea pigs" who will test out the six-hour workday, a move it's hoped will cut down on sick leave, boost efficiency, and ultimately save Sweden money. READ  

Armed royal guards caught drunk on the job
Photo: Gunnar Lundmark/TT

Armed royal guards caught drunk on the job

Three Swedish soldiers risk prison after they were found to be drunk while guarding Stockholm's Royal Palace. The men, who were all armed at the time, were charged on Friday. READ  

Stockholm
What do the Swedes do when summer's over?
Photo: Isabela Vrba

What do the Swedes do when summer's over?

The heatwave is well and truly over, the days are getting shorter, and winter is coming. With this in mind, The Local's Isabela Vrba chatted to ten Stockholmers about how they plan to tackle the autumn. READ  

Swedes spend fortune on nail polish trend
Photo: Bertil Ericson/TT

Swedes spend fortune on nail polish trend

Swedes are spending more than ever on makeup - and a growing chunk is going directly to their fingernails, new figures showed on Friday. READ  

Sweden mulls stripping paracetamol from shops
The pharmacy section of a grocery store. Photo: Fredrik Sandberg/TT

Sweden mulls stripping paracetamol from shops

After a drastic increase in the number of paracetamol poisonings in Sweden, authorities have said the drug should only be available in pharmacies. READ  

Listeria fears prompt meat recall in Sweden
File photo: Andreas Hagerman/Flickr

Listeria fears prompt meat recall in Sweden

After finding traces of listeria in ham sold in Sweden, food companies decided on Friday to recall several Danish cold cuts. READ  

RECEIVE OUR NEWSLETTER AND ALERTS
Politics
'Sweden Democrats hold the key to elections'
Society
Swedes celebrate first day of smelly fish season
Politics
Sweden elections: How do they work?
Finest.se
Gallery
People-watching August 20th
Society
Did you know the Bronx in NYC was named after a Swede?
Blog updates

17 August

Sea Fever (Around Sweden in a kayak) »

"I’m going to keep this post short and sweet as its not something I take any pleasure in writing. After much deliberation I have made the heartbreaking decision to abandon my trip after 1200km due to reoccurring injury. It is not a decision I have made lightly and it is one that has been truly devastating..." READ »

 

17 August

St. Louis strong (Blogweiser) »

"It’s typically a bad sign when my hometown makes news in Sweden. St. Louis was in the headlines here a few years ago when a tornado struck the airport. The city also caught attention after a politician talked about ‘legitimate rape’. Now, shooting and riots this week in Ferguson, a part of St. Louis, are..." READ »

 
 
 
Politics
"Iraq reminds me of the Yugoslav wars. It's the same story."
Society
Swedes slam Danes for 'racist' art
National
Majority of Swedes favour more or just as many refugees
Society
Lock your bathrooms: Swedish toilet invader on the the loose
Politics
'Assange will not leave until safe'
Gallery
See more images from the southern Sweden floods
Sponsored Article
Find out what gives this Swedish school executive appeal
Society
Serial chicken smuggler caught at Norway border. Again.
Society
This gold coin may be the key to solving a Swedish massacre
Shutterstock
Lifestyle
The Swedish mentor (and why you may need one)
Politics
Reinfeldt calls for tolerance to refugees
Gallery
People-watching August 16-17
National
Sweden celebrates 200 years of peace
Society
Top ten literal Swedish words
Politics
'Terror training should be illegal': Liberal Party
Gallery
Swedes talk about 200 years of national peace
Politics
Islamic extremist shakes Sweden with TV threat
National
Teacher fined for 'Hitler salute' in German class
Features
Kiruna residents talk life in a town on the move
Skatteverket
Sponsored Article
Introducing... ID cards and permits in Stockholm
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

729
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