A comparison of rent regulations in Finland Denmark and Sweden

in a tenancy law perspective

The Nordic Group – part 1

• Late industrialisation (Denmark first)

• Rented housing part of ordinary civil law – no special rules (1900).

• Sweden – first regulation 1905 (market liberal) and first rent control (1917)

• Denmark first rent control in 1916 – also the first regulation

• Finland – rent control during both wars – with tenancy protection.

Current situation - rented housing• Sweden one price regulation

applying to all professional landlord.

• Denmark 4 different price regulation systems – one is market pricing

• Finland – rent control as a result of accepting state subsidies (Arava) otherwise free pricing

Rent regulation disappears after the WW1

• Sweden in 1923• Denmark – liberalised mid 20-ties• Finland 1921-1923

Reintroduced second world war

Sweden 1942

Denmark 1939 – free rents for houses constructed after 1991 (10%)

Finland 1940 – Revoked regionally and free since 1961 Came back 1968 and revoked 1991-1995

Sweden reform in 2011 – no commercial segment with free rents

Superficial analysis

Rent regulation looking at the law

Tenancy Prot - Liberal

Sweden - Denmark – Finland

25% 29% 27 %

(rent income ratio)

? No answer in the national reports

Different aspects of ownership- Tenancy Law in all three countries is n intermediate between renting and owning

• Market functional aspects

- Economic freedooms

Conservative right of use- Landlord needs apartment for

personal use- sublocation- Transfer- Changing the apartment

Landlord needs apartment for personal use

Tenant friendly Landlord friendly

Sweden Denmark Finland

(2013 Act – Spelca- we want to create such a market)

Tenant needs money and want to sublet to a stranger

Tenant friendly Landlord friendly

Sweden Denmark

Finland

Transfer the use of the apartment to a relative

Tenant friendly Landlord friendly

Sweden Denmark

Finland

Making changes to the apartment

Tenant friendly Landlord friendly

Sweden Denmark Finland

Problems to solve

Subletting - long term sick/future use

- spanish apartment

- work or study in a new city

Barter

Value of coclusions

Generalisations

Poland – Evictions – problem

Market situation as a cause of regulation or a effect of it.