The European and Swedish Property Federations have welcomed the Swedish parliament's decision to adopt legislation to remove municipal housing companies' role in setting rents. The legislation is due to come into force on 1 January 2011.
The European and Swedish Property Federations have welcomed the Swedish parliament's decision to adopt legislation to remove municipal housing companies' role in setting rents. The legislation is due to come into force on 1 January 2011.
Under the new rules the municipal housing companies will operate under commercial conditions and their normative role for setting rents will be replaced by a system whereby any collectively negotiated rents become normative. The Swedish Property Federation will become a full partner in negotiations and the rents it negotiates will have the same legal significance as the municipal housing companies' rents.
'The abolition of the municipal housing companies' normative role for rent setting is very welcome, as is the requirement for them to be operated on commercial principles. The old regime discriminated strongly against private investors and landlords, which of course includes all "foreign" investors and landlords operating in the Swedish market,' said EPF director general Michael MacBrien.
'The legal complaints filed by the European Property Federation (EPF) to the European Commission have played a major role in the Swedish government's considerations,' MacBrien added.
'These changes will contribute to a better functioning rental market to the benefit of all who want to live in rental apartments. The decision also marks a fundamental milestone in a constructive process between the Swedish Property Federation, the Swedish Association of Municipal Housing Companies and the Swedish Union of Tenants to modernise the rental market,' said Reinhold Lennebo, president of the Swedish Property Federation.