New law eases subletting but may push housing costs higher

A new law that took effect on 1 July allows Swedish residents to sublet more properties for longer periods and at higher prices, SVT reports.

The government says the change will make the housing market more flexible by giving property owners greater freedom to rent out second homes without facing commercial landlord regulations. Under the new rules, individuals may now sublet two flats instead of one without tax or regulatory burdens.

But Boverket, the National Board of Housing, Building and Planning, warns the reform could drive up both rents and purchase prices in attractive areas. “In sought-after locations, this could push prices up somewhat,” said Magnus Jacobsson, head of unit at Boverket.

The package also permits higher rents when the tenant is a company. Jacobsson noted that if landlords find it more profitable to rent to businesses, private individuals may struggle to secure sublets. “It will of course be harder for people who do not work at that company to access housing, as some flats are effectively reserved for the company’s employees,” he said.

Housing Minister Andreas Carlson (KD) defended the reform as a way to free up more housing for those currently locked out of the market. “To make it easier to rent out your home and to provide more housing for those who cannot enter the market today, this is an effective and clear solution that is safe for both tenant and landlord,” he said.