Lappeenranta parish land rents rise by more than 500 percent
Sunday 8th November 2026 on 08:15 in
Finland
Land rents on some plots owned by the Lappeenranta Parish Union have risen by more than 500 percent as the union updates old agreements to reflect current land values, Yle reports.
In October, the church council approved raising the annual rent for an apartment-block plot in Kimpinen from 1,312 euros to 3,988 euros, an increase of about 200 percent. At the same meeting, rent for a detached-house plot rose from 378 euros to 2,367 euros, or about 526 percent.
The union owns 136 detached-house plots and 23 apartment-block plots in the city. It manages the finances of five Evangelical Lutheran congregations. Many of its leases with housing companies and private individuals date from the 1960s. Higher land rents increase the maintenance charges paid by residents in housing companies.
The union’s financial director, Kari Virtanen, said rents were previously linked to the cost-of-living index, which had not kept pace with changes in the value of money as land prices rose. Under the new agreements, annual rent is set at five percent of a plot’s sale value.
Virtanen said the lease agreements provide a good source of income for the union. “We are not putting pressure on anyone, but are trying to treat everyone equally,” he said.
The union is also offering plots for sale. A housing company in Voisalmi bought its plot for 300,000 euros. Its property manager, Ari Perälä of Kontu Isännöinti, said the union had priced it fairly. The housing company’s board unanimously approved the purchase.
The union owns 23 apartment-block plots, and agreements for 19 have already been renewed. It is currently negotiating new leases, which are long-term contracts. In Finland, land leases for residential areas must be fixed-term and last at least 30 years; contracts commonly run for 50 to 60 years. Virtanen said similar rent increases could occur again in 50 years.
Large rent increases on leased plots have also prompted disputes elsewhere. Last spring, the Helsinki Court of Appeal ruled that a rent increase of about 400 percent imposed by the Vantaa Parish Union on a housing company in Lehtisaari was unreasonable.