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Rents to shock rise as old houses in Sweden face renovation - just right at a time when housing is a problem in this country

Wednesday, 10 April 2013
More heat on Swedish property sector as changes in building structure would mean increased rents.

Just as people are trying to understand where to put their heads to sleep at night, those who are still struggling to get a place they can call home are going to feel more pain as it is expected that rents are going to shock increase in the coming years.

Thousands of tenants can expect substantial increases in rents over the next few years as residential building built in 1960 - and the 70's will be renovated.

Residential buildings built in the 1960s - and the 70s, the so-called one million programs are facing extensive renovations within the next decade. For many tenants, this will firmly lead to higher rents, reports radio Sweden today after examining 107 neighbourhoods in the country.

According to Radio Sweden, there is a great need for renovation so that those houses will het to the current required Swedish standard. Among other things, facades will be examined for asbestos and sewer replacement activities carried out.

According to the National Board for Housing the renovations can cost up to Skr300 billion in the next ten years.

Over 90 per cent of property owners whom radio Sweden consulted replied that the renovations will be funded by an increase in rents. In an area in Uppsala rents is being considered to be raised by 45 percent.
by Scancomark.com Team

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