In many countries, owner-occupied apartments are common. In Sweden, where tenant-owned apartments are instead part of the norm, owner-occupied apartments are only allowed in new production so far. However, the number of owner-occupied apartments in the country has gradually increased in recent years.
With arguments such as increased diversity in the housing market, the government now wants to make it possible for property owners to also convert their existing stock of rental apartments into owner-occupied apartments. No approval from tenants will be required, but those who do not want to or cannot buy their apartment will be allowed to stay in it as a tenant with possession rights.
Lars Matton, chief lawyer at Sveriges Allmännytta – which in its statement of opinion supports the proposal – says that there is interest among municipalities to convert some of their rental apartments into owner-occupied apartments.
We want to see mixed forms of tenure, he says, and see no risk that it will reduce the supply of rental apartments for young people and those with less purchasing power.
See risk of money laundering
But the proposal also raises strong criticism. The Economic Crime Authority highlights the risk of a more speculative housing market where owner-occupied apartments can be used criminally by companies buying rental properties to sell to straw men in money laundering schemes. The Swedish Union of Tenants' chief economist Martin Hofverberg also dismisses the proposal.
It would turn housing into a speculative asset and open up for money laundering. Owner-occupied apartments in other countries are often a nightmare, with properties that deteriorate and owners who have difficulty agreeing on joint commitments, he says.
Teenage parents common customers
Despite a certain increase, the boom in owner-occupied apartments that some predicted after the legislative change in 2009 allowed the form of housing in new production did not materialize. But there is demand in the country, not just in Stockholm, according to Olof Pettersson Herold, concept manager at housing producer JM. Among the country's 4,674 owner-occupied apartments, most are located in Stockholm, Västra Götaland, and in the mountains. JM is behind a large proportion of them.
Parents who buy apartments for their children when the children are 12-14 years old are a common customer group. They rent it out until the children are old enough to move in, says Olof Pettersson Herold.
The customer can also be a group of young people buying an apartment together or a gardening company that needs housing for seasonal employees.
Many see more advantages than with tenant-owned apartments where you have interest and amortization on joint debts, says Olof Pettersson Herold, who can understand criticism of the risk of money laundering.
As soon as it involves a lot of capital, it attracts less serious players. But we have control over who buys and a customer is not allowed to buy more than two apartments, he says.
Olof Herold Pettersson is, however, divided on owner-occupied apartments in the country's existing stock of rental apartments.
In an owner-occupied apartment, everything is measured individually and we try to reduce the need for joint maintenance. It may not be as easy when it comes to older, worn-out properties, he says.
Ebba Blume/TT
Facts: Tenant-owned apartments should not be allowed to become owner-occupied apartments
TT
A legislative change is currently being investigated that will make it possible for property owners to convert existing rental apartments in apartment buildings into owner-occupied apartment properties.
Owner-occupied apartments are formed through a land survey procedure. The property owner should be able to take the initiative to convert rental apartments. No approval from the tenants will be required.
The law will not apply to houses owned by tenant-owned associations or rented by cooperative rental associations.
When an apartment is converted into an owner-occupied apartment, the person renting the apartment will have the right to buy the apartment before others. The property owner must offer the tenants to buy their apartments no later than two months after the land survey procedure has come into force. Tenants will retain their previous rights in rental apartments even after a conversion and in relation to new owners.
An owner-occupied apartment owner who seriously violates the rules of order or causes disturbances can be ordered by the court to sell their apartment. The proposal for a legislative change is now on a referral round. The government will then submit a council on legislation to the Council on Legislation for review, followed by a proposal to the Riksdag. The new law is proposed to come into force on 1 July 2026.
Sources: The government and The Swedish Property Federation.
