The average rent increase will be 4.7 percent in 2025, which can be compared to 4.9 percent in 2024. Over time, an average increase tends to be around two percent per year.
The increase is lower than last year, but still high, and it's difficult to be satisfied, says Carl-Johan Bergström.
At the same time, the figures from the Tenants' Association show a large spread in terms of increases, ranging from two to six percent. This is due to the fact that adjustments to local fees and taxes differ between municipalities.
Agreed
According to the Tenants' Association, 58 percent of rent agreements are now agreed, compared to 14 percent at the same time last year.
We have finalized most agreements that involve an increase from January 1 next year. This means that tenants know their new rent well in advance and don't have to worry about a retroactive rent increase, says Bergström.
Through the so-called Three-Party Agreement between the Swedish Public Housing, the Property Owners, and the Tenants' Association, the parties have agreed on the economic parameters to be used as a basis for negotiations.
Despite this, they often stand far apart, and some property owners want to see rent increases of up to ten percent, sometimes more.
It's very far from what is realistic to agree on, and it scares the tenants, Bergström believes.
Increased costs
He emphasizes that property owners cannot expect to get full coverage for increased costs in times of significant fluctuations.
The big challenge in negotiations is to find a balance in terms of cost distribution. But, one must remember that inflation and cost increases change, while rent increases are permanent, says Bergström.
He believes that property owners need to adjust to lower rent increases in the coming years and work on streamlining their management.
We receive daily calls from tenants who are worried and don't know how they will manage to pay a higher rent. We have really reached the pain threshold, tenants can't take any more, he says.
Maria Stensson/TT
Facts: Here are the highest and lowest rent increases
TT
Lowest increases
Nivika- Nybro, Kalmar, +2 percent
Wallenstam- Sundbyberg, Stockholm +2.6 percent
Highest increases
Väsbyhem- Upplands Väsby, Stockholm +6.20 percent
Gate Fastigheter AB- Hjo, Västra Götaland +6 percent
The information is based on agreements that were finalized by December 18
Source: Tenants' Association
The Three-Party Agreement means that the Swedish Public Housing, the Property Owners, and the Tenants' Association should base their negotiations on the same economic factors.
From 2023, five different factors are recommended to form the basis for negotiations.
Two factors reflect local conditions, such as fees for electricity, heat, water, and sewage, as well as management and maintenance costs. Three factors are national – interest rates, GDP, and GDP per capita, as well as inflation excluding rent. Consideration should also be given to the socio-economic development in the area.
The purpose is to ensure a better negotiation process, which should benefit both tenants and property owners.
Source: Tenants' Association and Swedish Public Housing
