Proposal that presumptive rents should follow the general rent development
We are monitoring the development of the issue regarding the determination of presumptive rents. A matter that has become both debated and highly criticized.
- The government has appointed an investigation, "An Improved Model for Presumptive Rent" (SOU 2024:62), which aims to strengthen the conditions for new production of rental apartments. One of the central reforms presented is that presumptive rents should follow the same annual rent development as other rental apartments, which in turn will create better predictability for property owners and investors. In disputes over initial rents, arbitration is also proposed, with the aim of contributing to smoother rent negotiations.
- The legal situation for presumptive rents currently rests on previous precedent decisions from the Svea Court of Appeal that presumptive rents may only be increased by half of the percentage negotiated in the annual rent negotiations. This has led to a deterioration in the investment calculations of housing companies, which in turn results in reduced construction.
- The real estate industry has therefore long called for a reform of presumptive rent, as uncertainty about rent development and cost increases has hampered investments in new production. By addressing these issues, the proposal can increase interest in building new rental apartments and strengthen the housing market.
Despite the positive changes, experts believe that further reforms are needed to fully promote housing construction. The proposed model is an important step, but the issue of long-term sustainable rent levels remains to ensure increased new production. The investigation is to be reported no later than March 3, 2025.
