Tenants face skyrocketing rents due to high inflation

By on August 11, 2022 0

According to tenants’ interest group Lejernes Landsorganisation, at least 180,000 Danish tenants are at risk of significant rent increases due to continued inflation. Some may already be experiencing rent increases, while many can expect to receive “surprising” new contracts at the end of the year.

“It’s bad. It has become a serious problem that will affect a lot of people,” warned Jørgen Dyrholm Jensen, the operations manager of Danske Lejere, on TV2.

Skyrocketing rents
Under the new rental law enacted in 2015, private landlords can adjust their rents according to the net price index published by Danmarks Statistik, which is used to measure inflation. The index is based on approximately 25,000 prices collected from approximately 1,800 retail outlets, businesses and institutions nationwide.

Inflation levels have been relatively stable for a long time, so the legislation reasonably controls rent increases. However, this year, due to the pandemic and the war in Ukraine, inflation levels have remained high and rental prices are expected to increase significantly under the legislation.

Living in fear of a 25% raise
“If we had to pay so much in terms of rent and energy, we wouldn’t be able to live here anymore,” Christina Gamholdt, a 50-year-old tenant, told TV2.

She and her family rent a 114 m² apartment for 9,600 crowns per month. According to the tenancy law, their rent can amount to 12,000 crowns per month. Such high rents forced them to consider moving.

Rent regulations requiring adjustment
“Those who live in rented accommodation are usually the ones who earn less and therefore cannot afford to buy a house. As a result, rent increases hit them even harder,” Ida Marie Moesby, consumer economist at Nordea, told TV2.

“We believe that the government must intervene to protect tenants from sudden and substantial increases in rental prices. Rent increases should be temporarily halted in exceptional circumstances,” added Anders Svendsen of Lejernes Landsorganisation.