• 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)

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
Science
Swedish women in two-year sex pill study
Contraceptive pills have been linked to mood swings. Photo: Shutterstock

Swedish women in two-year sex pill study

Three hundred women from across Sweden are taking part in a study designed to demonstrate that modern contraceptive pills don't lead to decreased libido or mood swings. READ  

National
Stockholm 'sinking' oil spill ship safe
The ship was rescued on Thursday. Photo: Swedish Coast Guard

Stockholm 'sinking' oil spill ship safe

After fears a ship carrying around 52 tonnes of oil could sink in Stockholm's archipelago, Sweden's Coast Guard said the vessel had been towed to safety. READ  

National
Dog attack policewoman acquitted on appeal
A scene from a video of the attack published by Dagens Nyheter

Dog attack policewoman acquitted on appeal

A policewoman accused of letting her dog attack a drunk man while she repeatedly hit him with a baton, has had her conviction overturned by a court in Stockholm. READ  

Entertainment
What's On: October 31st - November 7th
Uma Thurman will soon be on her way to Stockholm. Photo: TT

What's On: October 31st - November 7th

Halloween fun and an international film festival are the big events hitting Stockholm this week. We cast our eye over the capital and the rest of the country for the best activities to check out this week. READ  

International
Pirate Bay Swede found guilty in Denmark
Gottrid Svartholm Warg. File photo: TT

Pirate Bay Swede found guilty in Denmark

Sweden's Pirate Bay Founder Gottrid Svartholm Warg was found guilty of hacking crimes in a Danish court on Thursday. READ  

National
Malmö loses out as rare toads move in
The European green toad. Photo: H. Krisp (WikiCommons)

Malmö loses out as rare toads move in

After a rare species of toad moved into southern Sweden's Malmö, builders have had to tone down massive expansion plans in the area. READ  

Politics
Palestine recognized as state by Sweden
Sweden's Foreign Minister is Margot Wallström. Photo: TT

Palestine recognized as state by Sweden

The Swedish government has officially decided to recognize Palestine, with the move announced in a speech by the country's new Foreign Minister Margot Wallström. READ  

Interview
Stockholm's shocking take on Halloween
For ten days, Globen is transformed into a giant pumpkin. Photo: Shockholm

Stockholm's shocking take on Halloween

American Bill Schacht missed the spooky outfits, family feasts and charity events he associated with Halloween when he moved to Sweden. So he did something about it. The Local meets the founder of the capital's annual Shockholm parade. READ  

Business & Money
Huge losses for energy giant Vattenfall
A Vattenfall plant in Germany. Photo: TT

Huge losses for energy giant Vattenfall

Swedish energy company Vattenfall has reported losses for the third quarter in a row. READ  

International
Malala donates prize winnings to Gaza
Malala receives the Children's Prize from Queen Silvia. Photo: TT

Malala donates prize winnings to Gaza

UPDATED: Girls' rights champion Malala Yousafzai, who was in Sweden to accept the World's Children's Prize on Wednesday, said she would use all her winnings to help rebuild schools in war-ravaged Gaza. READ  

RECEIVE OUR NEWSLETTER AND ALERTS
Business & Money
Get your own office in Gothenburg or Stockholm - free for a day
Gallery
People-watching: October 30th
National
Sweden remains fourth best for gender equality
National
Timeline: Julian Assange sex allegations
Sport
World Cup ski race on 'fake' Stockholm slope
Blog updates

29 October

Scariest day (Blogweiser) »

"This is what’s frightening me on Halloween. http://www.youtube.com/watch?v=D4OFZVCu8J0&list=UUJu5J7jG4uoYSjWbpFsJBuQ Follow my posts on FB. ..." READ »

 

24 October

Editor’s blog, October 24th (The Local Sweden) »

"Hi readers, Get ready to read our weekly digest of Swedish news in less than 60 seconds. The..." READ »

 
 
 
Society
An Arctic tradition: hunting and handicraft
Society
Stockholm taxis offer free therapy sessions
National
The Local meets Health Minister Gabriel Wikström
Gallery
Property of the week: Österåker
Society
Homeless turtles get Stockholm police ride
National
Construction worker has 'Sweden's best beard'
National
Italian musician jazzes up Sweden's Lapland
Gallery
Zlatan's career in pictures
Finest.se
Gallery
People-watching: October 25th and 26th
Lifestyle
'Swedes are funnier than they think'
National
Swedish town 'like Venice' after heavy rains
Lifestyle
What's On in Sweden: October 24th - 31st
Gallery
People-watching: October 22nd
Gallery
In Pictures: Prince Carl Philip and Sofia Hellqvist
Lifestyle
Eight things to love about renting a Swedish apartment
National
Vasa ship cannon blasted in Sweden
National
Sub hunt: Day-by-day
National
Sub hunt: Stockholm islanders share their fears with The Local
Sponsored Article
The best options for oversea transfers
National
Dentist gives free care to Roma beggars
Gallery
Property of the week: Malmö
Gallery
PHOTOS: 'Foreign activity' in Swedish waters
TT
Society
QUIZ: How good is your Swedish?
Society
The nudity... and nine other things expat men notice in Sweden
Gallery
People-watching: October 15th
Gallery
Your views: Should outdoor smoking be banned in Sweden?
Business & Money
Sweden has 'large hole' in finances
Sponsored Article
Introducing... Finding a job in Stockholm
Society
Monster salmon caught in northern Sweden
Gallery
Property of the week: Lorensberg
National
Scandinavia's child bride
National
Ebola crisis: How is Sweden preparing?
Business & Money
How Sweden is becoming a cashless society
Gallery
Stockholm Burlesque Festival 2014
National
How a little red horse became a symbol for Sweden
Gallery
People-watching: October 12th
Business & Money
The hottest start-ups from southern Sweden
National
Stockholm is 'best' region for well-being
Gallery
People-watching: October 8th
National
Five facts to know about Patrick Modiano
Sponsored Article
How to catch the first lobster of the year
Team SCA
Sponsored Article
All-female SCA team takes off on Volvo Ocean Race
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

1,005
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