The price to rent from private owners has also been pushed up due to a change in the law in which tenants could be charged based on mortgage costs in their neighbourhood, as opposed to rent prices. Demand is gradually improving Epicenter Living – a solution for tech firms’ housing problems? Latest news, analysis and comment on security in Europe and beyond. Of the country’s 290 municipalities, 255 say there is a lack of housing. Swedes spend a larger proportion of their disposable income on housing compared to other European countries, and that figure is rising rapidly. Those laws later evolved into the system Swedes now seem open to rethinking. Meanwhile, second-hand contracts are exchanged for far more on the black market. Sweden’s housing market has been a political battleground for over a century. Supporters of Sweden’s current system have reacted strongly to the attempt to chip away at rent controls. Post limit reached. Among its recommendations to keep house prices down was a debt-to-income cap, and if prices continue to rise, an easing of rental regulations and phasing out mortgage interest deductibility. It was another step in Sweden’s ambition to serve its citizens from cradle to grave, with the aim for everybody in the country to be able to live in a nice home for a reasonable price, regardless of their income. This article is part of the series Home Truths: Europe’s Housing Challenge. The investment bank predicts housing prices will fall 10%, and is worried that even worse could be in store if interest rates rise faster than expected. “That is not fair, I’d argue,” she said. “There are dangers that Sweden’s economic health could be too reliant on one sector of the economy.”. Anna König Jerlmyr, the mayor of Stockholm | Robert Hradil/Getty Images. While an increase in building is a step in the right direction, policy makers need to be very careful in order to avoid a crash in prices that could have drastic consequences for the country’s economy. The development shows that even countries with universal health-care systems are struggling to keep up with the Covid crisis. There has been a lack of housing in the country for several years, with house prices rising and renters in metropolitan areas struggling to find somewhere to live. Campaigning, lobbying and political influence in the U.K. This article is produced with full editorial independence by POLITICO reporters and editors. It has been difficult, however, to prove this claim. A third of the million new homes were single family dwellings, a third were multifamily housing of three stories or less, while the final third consisted of large concrete apartment blocks of four stories or more, with which the programme is often associated. Swedish public housing companies. Your comment will be reviewed by the moderator for compliance with the Rules. Over 300 companies, found in virtually all municipalities. The debate largely ended in the 1940s, after a series of decisive election wins for Sweden’s Social Democrats allowed the party to institute price controls on housing. The strike was followed by a 20-year legislative tug of war over tenants’ rights, as lawmakers swung from favoring renters to supporting landlords, and back. Those who could afford to move often did within a couple of years and they became areas of low demand that people who required social assistance – such as recent immigrants, people with addiction issues and those with mental health problems – were increasingly placed. Of that number, 30,450 were apartments, which represents a 24 per cent increase compared to the same period last year. It’s not going to change soon. Stockholm County region is one of Europe’s fastest growing regions and an attractive place for business establishments. Architect Daniela Lamartine has designed a floating community to address Sweden's national housing crisis. Sweden’s housing market has been a political battleground for over a century. She said her job is often to explain how the two “values” differ fundamentally and reiterate her organization’s support for the “utility” and resistance to “market.”, “I tell them ‘utility value’ represents the general tenant’s valuation,” she said. A precursor to the politically powerful Swedish Union of Tenants — or Hyresgästföreningen — organized one of Europe’s first rent strikes in 1916, after residents of Nynäshamn, a town south of Stockholm, complained of cockroaches, lice and bare earth floors. “What is important is that we remain open-minded and do our best to ensure that we have a fair and efficient system for housing,” König Jerlmyr added. 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