House rent in weather | The class struggle
– In the past year, we have doubled the number of people contacting us with questions about rent increases, says Anne-Rita Andal, head of the housing environment department at the Tenants’ Association.
The not-for-profit organization that works for the rights of tenants has achieved a record number of people who need help. It’s not that nice.
Historic increase
On Friday, Eiendom Norge reached a high, which shows that the price in the rental market has increased historically quickly in the past year. On average, rental prices in the country’s largest cities increased by 7.5 percent last year.
In Oslo, the price increased by 6.5 percent, while Trondheim and Bergen had price increases of 13.5 and 13.6 percent. Eiendom Norge tracks that the price will continue to increase.
– It’s a perfect storm. The end of the pandemic means that more people are moving more. Many want to move to the big cities. Then the landlord is marked. At the same time, the price is pushed up by a large increase in the consumer price index, which is the leader in the rental price, says Andal.
Shared housing market
Around one million Norwegians rent housing, and the number has increased. Since 2015, the proportion of renters has grown by 90,000. People with vulnerable finances are overrepresented among those who rent. The Tenants’ Association is afraid that many do not have the finances to cope with the price increase.
– There are many bad fates out there now. I know someone who is disabled and lives in council housing. Even though his health is not good, he has started working odd jobs to be able to afford rent and food for his children, says Andal.
The Tenants’ Association believes the price shock will hit in several ways. More will have to live in poverty to afford the rent. Others may have to move to cheaper accommodation or be evicted.
– We are very worried about people losing their homes. Involuntary relocation entails a great financial and psychological burden. Child can lose school circle and network, says Andal.
The Rent Act has rules for how much landlords can increase the rent.
- Every year, the landlord can demand that the rent be adjusted in line with the consumer price index (CPI). The CPI shows the development of the price level for necessary goods and services.
- Every three years, the landlord can demand the rent adjusted to “group rent.” Gjeng’s rent must represent the established rent level in the area.
The law is supposed to protect tenants from exorbitant price jumps, but in a hot rental market and with a CPI of 5.9 percent of last year, landlords with the law in hand can still have the price significant.
Take more than they should
– Is the price increase a natural consequence of inflation and price development, or are home owners paying an extra price?
– Many homeowners could easily avoid increasing prices as much as we are seeing now. If you let market thinking rule, it is perhaps “natural” to demand as many as you can, says Anne-Rita Andal.
She believes that Norwegian tenants are extra vulnerable because the Norwegian rental market is more market-driven than in countries like Denmark and Sweden.
– What must be done?
– In the longer term, we must expand the housing policy to ensure that you can live well in rented accommodation. We are therefore very happy that a new tenancy law is to be drawn up, but it takes time. In the short term, we support a proposal Rødt has put forward for a “rent freeze” following the model introduced by the Social Democrats in Denmark. We get it gets serious treatment in the Storting.