Liberal Alliance housing proposal could raise rents by thousands per month

A proposal by Danish political party Liberal Alliance to remove rent controls on older apartments could increase monthly rents by up to 3,000 kroner (€405) for new tenants, according to economic experts.

The plan would abolish special regulations that currently cap rents for over 400,000 pre-1992 apartments, affecting new tenants when these properties are re-rented. Economists warn the change would lead to significant rent hikes, particularly in major cities.

30% rent increase expected in Copenhagen

Michael Svarer, former government economic advisor and professor at Aarhus University, estimates that removing rent controls in Copenhagen would add roughly 3,000 kroner to monthly rents, based on calculations by the Danish Economic Council. Similar increases are expected in Aarhus, Odense, and Aalborg.

“This would represent a substantial burden on most household budgets,” Svarer stated.

Data from the Economic Council shows current tenants in pre-1992 apartments pay about 30% less than market rates. In Copenhagen, this discount averages 37,100 kroner annually, while the national average is 17,000 kroner.

Party defends proposal as market correction

Liberal Alliance’s financial spokesperson Ole Birk Olesen acknowledged the potential 30% increase but argued it would only apply to a minority of apartments in major cities. He framed the change as aligning older rentals with newer properties that already have market-based pricing.

“This isn’t revolutionary—it’s about older apartments adopting the same rent levels as newer ones,” Olesen said, adding that current tenants would remain protected under existing contracts.

The proposal would maintain rent increase caps (linked to net price index, maximum 4% annually) for tenants once new contracts are signed. However, researchers note the change could particularly impact young people moving to cities, who currently benefit from below-market rents in older apartments.

Martin Vinæs Larsen, a housing policy researcher at Aarhus University, warned that in expensive Copenhagen neighborhoods, rent increases could exceed 6,000 kroner monthly if controls are removed.