Tensions rise over proposed rent increase in Sweden negotiations

In the ongoing negotiations between tenant associations and property owners in Sweden, significant tensions have arisen. On one side, tenant representatives argue against a proposed 15% rent increase for the upcoming year, which would raise the monthly rent from 10,000 SEK to 11,500 SEK. Marie Linder, head of the tenant association, highlights that this demand is unacceptable, noting that many tenants already struggle with previous substantial rent increases.

Linder, a resident of Tyresö near Stockholm, mentioned that some neighbors might have to consider relocating if the hikes are implemented. She stressed that many tenants have limited incomes and are grappling with rising inflation impacts, including soaring food prices. Meanwhile, property owners are poised to benefit from decreased mortgage interest rates, making housing more affordable for those with ownership rights, which Linder claims creates societal imbalance.

On the other hand, Tomas Ernhagen, chief economist at the property owners’ association, argues that costs for property owners have been rising and have not received adequate compensation. He emphasizes that rental income is vital for ongoing investments in housing, renovations, and maintenance.

Negotiations cover rental agreements for 2025 and are expected to conclude this fall. Last year, private landlords sought a 12% increase, which was ultimately settled at 5.8%. The property owners’ association represents approximately 400,000 rental units across the country, while the tenant association boasts 3 million members.