Background & Purpose

Currently, rents for new apartments are set for 15 years at a time, which often leads to high starting rents. The government wants to make it easier to build new homes and lower the initial costs for people moving in.

Proposals & Debate

The proposal allows for more flexible rent adjustments during the 15-year period and lets tenants choose or opt out of specific apartment features to influence their rent. It also introduces a system where an independent arbitrator can help solve disagreements between landlords and tenants regarding rent levels.

The Decision

The parliament approved the new rules, which allow for more flexible rent adjustments and give tenants more influence over their apartment's design and cost.

Does this affect you?

  • Tenants in new apartments: They get more influence over their apartment's design and potentially lower starting rents.
  • Property developers: They gain more flexible rent models, which is intended to encourage the construction of more rental housing.

In Practice

  • Rents for new apartments can be adjusted more often during the first 15 years.
  • Tenants can influence their rent by choosing or opting out of specific apartment features.
  • Landlords can adjust rents if they make significant modernizations to the building.
  • Disputes about rent levels can be resolved by an independent arbitrator appointed by the Rent Tribunal.