Government averts threat of market-set rents
Published: 13 Nov 09 16:44 CET | Print version
Online: http://www.thelocal.se/23258/20091113/
A government memorandum has concluded that both public and private housing companies should negotiate rental fees with tenants based on a utility based system, rather than fees being market-oriented.
- Young Swedes forced to live with mum and dad (15 May 13)
- Illegal rentals thrive in Stockholm flat crunch (6 May 13)
- Malmö locals cash in on Eurovision frenzy (19 Apr 13)
Sweden’s utility based value system for allocating rental housing – which takes an apartment’s condition, location and the year it was built into consideration.
It also a system based on negotiated rents set by collective bargaining and those factors will remain, to the relief of the Swedish Union of Tenants (Hyresgästföreningen).
”Market-oriented rents would have been a catastrophe for the country’s tenants,” Barbro Engman, chair of the organisation said in a press statement.
”With the current housing shortage across the country, it would have resulted in substantial increases in rental fees.”
Rental fees can still be negotiated with the same principles as before and following the government proposal private housing companies can also use the same process.
It means public housing companies consequently lose their roll in setting the standard for rental fees.
According to the government, the proposal brings a large-scale housing reform one step nearer in a bid to put the Swedish housing market on an improved course.
What do you think? Leave your comment below.
Sweden's economic mood dips: survey
Swedish consumers are feeling less optimistic about the economy, with a down-turn also visible in the mood of the manufacturing industry, Sweden's National Institute for Economic Research said on Friday. READ () »
Swedish fashion grads turn to melancholy
This year's Beckmans fashion graduates unleashed a dramatic clash of collections in Stockholm this week. It may have been dazzlingly hot outside in the sunshine, but on the catwalk things got a little dark. READ () »
Sweden 'fails to help well-educated foreigners'
The white-collar union Saco has lambasted Sweden's Employment Agency for its failure to help well-educated, foreign-born job seekers, whose unemployment rate is more than three times the average for people born in Sweden. READ () »
Mixed results for Sweden refugee job push
Fifteen percent of refugees in Sweden who enrolled in the new establishment system the past two years have gone on to find jobs, new figures show, leading some observers to worry that the low success rate will place a burden on the benefits system. READ () »
Riksbank unveils new board members
Sweden's central bank has appointed two new board members plucked from banking and academia to replace two outgoing members, one of whom was an outspoken critic of the Riksbank's commitment to the government's inflation goal. READ () »
350 jobs lost as Ericsson shuts Swedish factory
Swedish telecom giant Ericsson has buckled under the pressure of European competition and will turn off the switch on a cable production plant in Sweden, leaving 350 employees without jobs. READ () »
Sweden has 'lower tax burden' than Senegal
While Sweden has a reputation for having one of the most painful tax bills in the world, a new report ranks Sweden 20th when comparing the tax burden on salaries when social security payments and salary brackets are taken into account. READ () »
Ericsson probed over suspected bribes
Swedish telecom equipment maker Ericsson is suspected of having bribed ministers in Romania in connection with being awarded a contract for the country's emergency number and is now under investigation in the United States. READ () »
Warning over 'long-term' Swedish export slump
Sweden's largest business confederation has gone out guns blazing, criticizing politicians for not facing up to the challenges of "a lost year for Swedish exports" in 2012. READ () »
'Lean hospital a sign of Swedish welfare reform'
A Stockholm hospital saved from closure by private health care providers has been hailed by the Economist as one of modern's Sweden public-private success stories. READ () »
- 19/05 Nord Stream plans new gas pipelines »
- 17/05 'Sweden next in line for housing market crash' »
- 17/05 Solna voted best place to live in Sweden »
- 17/05 Ikea founder rated fifth richest in the world »
- 17/05 LinkedIn profile lands Swede with hefty tax bill »
- 16/05 India in no rush to open first Ikea store »
- 16/05 H&M CEO to Bangladesh: raise minimum wages »
- 15/05 Sweden plummets in income equality ranking »
- 15/05 Pensioners to recruit ageing Swedish rockers »
- 15/05 Swedish shop hits back: our Converse are real »
| 25/05 | Director of Product, Apps | Stockholm |
| 25/05 | Director of Product, Hardware | Stockholm |
| 25/05 | Director of Product, Platform | Stockholm |
| 25/05 | International Brand Manager | Malmö |
| 25/05 | Lead Product Designer - Spotify Apps/Partner Solutions | Stockholm |
| 25/05 | Major Account Manager Sweden | Stockholm |
| 25/05 | Medical Director (Respiratory) | Sverige |
| 25/05 | Principal / Senior Business Consultant | Stockholm |
| 25/05 | Project Manager | Hässleholm |
| 25/05 | Project Manager | Stockholm |
- 24/05 IEA: protect consumers from energy price hikes »
- 24/05 German consumers keep recession at bay »
- 23/05 Tax evasion 'OK for Joe Normal' say Germans »
- 22/05 Spain and Germany fight youth employment »
- 21/05 Car boss asks Merkel to rethink CO2 pledge »
- 21/05 SAP to hire hundreds of autistic IT experts »
- 18/05 Economists warn against German euro exit »
- 17/05 Germany cool to France's EU economy plan »
- 17/05 Au pairs rules relax for non-German families »
- 16/05 Germany refuses to slam French economic policy »
- 04:11 Husby Riots and violence against the police...
- 02:34 Driving to Sweden from the UK
- 02:32 Tuition fees across Europe for non-EU students
- 00:27 Relocation to Stockholm
- 23:55 Something you dont know about SWEDEN
- 19:12 Phone landline installation
- 18:27 Salary for a cashier working at ICA, COOP?
- 17:34 Canada vs. Sweden
- 13:22 Sweden, English News and Alternative Media...
- 23:14 Cleaning business in Sweden
Find products and services that are specifically focused on English speakers living in Sweden!
FULL DETAILS
Individuals & Couples - Stockholm Beth Rogerson PhD - Clinical, Marriage & Family Therapist
Click or call 08-5580 1266 now
Create an account with Banc De Binary, the world’s most reputable binary options firm, and start cashing in today! You can start by practicing with our free $50,000 demo account.
www.bbinary.com
Expat counsellor & talk therapist offers counselling for stress, relationship issues, sexuality, culture adjustment & life coaching. Private & confidential. Stockholm or Skype. Contact me today! 08-559 22 636 or
CLICK HERE
Your comments about this article:
The comments below have not been moderated in advance and are not produced by The Local unless clearly stated. Readers are responsible for the content of their own comments. Comments that breach our terms and conditions will be removed.
Government ensures lack of rental housing in highest demand locations
Government endorses black market rental system for rental housing in Stockholm
Like everything else in Sweden that is totally "controlled" (Systembologet, etc), it suits the incumbents to keep the status quo, making it difficult for new entrants to enter the market.
But then again, the writer was merely telling the truth. The fact is that this would be catastrophic here in Sweden. The government has controlled so many things for so long that losing this control would put people in quite a predicament.
I must say that the one advantage to having their hand in the market is the fact that the elderly and young can "afford" to live in the city center, making the city a more complete "slice" of Sweden's people. However, the negative ripple effects from price ceilings far outweigh this social benefit. As a result, the rest of us living in the city center face an absurd shortage of apartments and sickening rental prices as a result.
"Market-oriented rents would have been a catastrophe for the country's tenants", says Barbro Engman. Over time, consumers would only benefit. However, I think what Barbro really means is that this would be catastrophic for the politicians.
I'm not sure it would be catastrophic. You seem to argue both aspects good and bad. In Sweden and other countries your good point about older people and young people in the cities are addressed by subsidized specialize housing of which Stockhlom already has built for retired people. The universities and dorms also help in the younger people department. Phasing these things in works. Maybe remove controls for new or increases housing stock could allow some new development near the city.
Beside there is already a big black market where controlled rents are basically sold combined with the lack of rental units which is really the problem ..