– Housing is one of the biggest drivers behind inequality – E24
The Tenants’ Association is positive about Rødt’s proposal for a temporary price ceiling in the rental market. Højre believes that housing construction will regardless be the most important measure against rising rental prices.
Red promoted a proposal for the Storting on measures to be put into use regarding the price in the rental market.
One of the proposals is an investigation into a possible price cap on rental housing in press areas.
– We believe that in the larger cities, where there is the greatest pressure, we should look at a ceiling on how high the rental prices can be adjusted up. This is something that is done in several other European countries, so that you get a more regular marking. Nothing is regulated in Norway, and that’s why we’ve got the high prices we’re seeing, says Tobias Drevland Lund, Storting representative for Rødt.
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The average price for renting a home in Norway was NOK 11,423 in the fourth quarter of 2022, an increase of 5.88 percent from the corresponding quarter the year before, according to the rental platform husleie.no.
In Denmark, it was politically agreed last fall that rental prices can increase by a maximum of fire percent annually the next to the years.
Lund i Rødt believes that the same thing is possible to implement in Norway, as long as there is political will for it.
– Those who are on the rental market are often the ones who struggle the most to make ends meet and now suffer the most from increased food and electricity prices. Such a price ceiling can create security for tenants in a pressured situation, he says.
The rent can today be changed every twelve months in line with the consumer price index (CPI), according to the Rent Act.
The tenant association is positive
The party also wants to see the possibility of a separate rental policy for the housing sector. This must be checked to see if the rental agreement is in good enough condition, and to assist with questions about rental contracts.
Lund says that this will not make it more difficult to rent out a home, but it should contribute to tenants getting more rights.
– Many homes on the market are in poor condition, and landlords can often do something about this. The committee must contribute to equalizing the unequal relationship between landlord and tenant, he says.
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The Tenants’ Association is positive about several proposals for Rødt and believes that a price ceiling can have a good effect on the rental market in the short term.
Anne-Rita Andal, who is head of the department for the housing environment, properly ensures that the proposals get a hearing in the Storting.
– Our experience has been that the majority in the Storting have almost on autopilot voted down proposals around the housing policy. They have thought that eierlinja is good enough and takes care of the majority, but with an increase in the number of renters and the number of disadvantaged people needing more housing policy tools than we have today, she says.
Andal says the association has had a large increase in the number of inquiries with questions about additions to the rent.
– This little addition has surprised us, but it is probably a sign of the times we live in, she says.
Andal believes that the rental market has been trivialized for many years, and is now calling for a more comprehensive housing policy.
– We now see that housing is one of the biggest drivers behind inequality in recent years. Renting should be a safe alternative to owning, so we want more rental housing in the public and non-profit sector, as well as better framework conditions for professional rental operators, she says.
– Housing construction is the most important move
Several in the housing industry point to the balance between supply and demand for rental housing as the biggest driver of the strong price increase.
Mudassar Kapur, Storting representative for Høyre, writes in an e-mail to E24 that the most important measure against high rental prices will be to strengthen the supply side.
– Høyre believes that the most important move to do something about the rental market is to build more homes, so that we can reduce the housing shortage and reduce price pressure. Furthermore, arrangements should be made for a predictable and good rental market, and there will be a need to update today’s legislation, he writes.
– We must also strengthen the investment in the rent-to-own scheme so that people can eventually own their own home, continues Kapur.
Høyre also believes that it will be natural to come back to the individual proposals for Rødt at a later date, since they are under committee consideration.
Don’t want easy solutions
The Tenants’ Association also believes that more thought should be given to initiatives that can stimulate more housing construction around the country. However, they do not say they want easy solutions.
– The rental properties must also be of good quality, so there is no other way out yet as this will take time, says Andal.
Rødt also has a desire to build more rental housing, but that it is necessary to have mechanisms that can regulate price growth in the shorter term.
– A better offer page does not help those who here and now will struggle with many thousands in increased rental costs, says Lund.
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