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https://nordictimes.com/economy/alarming-rent-increases-put-pressure-on-swedish-households/

Economy

Alarming rent increases put pressure on Swedish households

Welfare collapse

Published 12 April 2024
– By Editorial Staff
Monthly rent increases of many hundreds of crowns again this year.
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After unusually protracted negotiations between the delegations of Sweden’s Tenants’ Association (Hyresgästföreningen) and the housing companies, this year’s rent increases have been finalized. As was the case last year, this will be a severe blow to already hard-pressed working and middle class households.

With increases averaging over five percent, many households have seen their rents rise by between 8 and 12 percent in just over a year.

After intense negotiations, the rents for the country’s rental apartments, especially in the major cities of Stockholm, Gothenburg and Malmö, have finally been set for 2024. The rents of the two public housing companies, Stockholmshem and Familjebostäder, will increase by 5.6 percent as of January 1, 2024, with the exception of the presumption rent, which will increase by 4 percent.

The companies had originally demanded a 7.5 percent increase, but after several rounds of negotiations and unsuccessful attempts to reach an agreement, the matter was referred to the Rent Market Committee (HMK). When negotiations there also failed, the matter was taken over by an “independent chairman” whose decision on the rent adjustment is final and cannot be appealed.

Anika Mölsä, who lives in one of Stockholmshem’s buildings at Valla torg in Årsta, is furious.

– This year’s increase of 5.6 percent is really hard. Last year’s increase was probably high, and it feels damned unfair that during the good years the property owners got tax reductions and money back without us tenants benefiting. Now that things are even tougher, we have to help pay, but we didn’t get anything in the good years.

Svenska Bostäder Stockholm and the Tenants’ Association have agreed on a local two-year agreement in which the vast majority will receive a 5.35% increase. A few hundred apartments will receive a 6 percent increase, but household electricity is included in the rent. The average increase for the 28,000 apartments will be 4.99 percent.

The housing shortage is acute and rents are rising for households under pressure. Photo: Veidekke/CC BY-NC-ND 2.0

“Where should people live?”

In Gothenburg, rents have been set after months of negotiations. The four municipal housing companies have signed multi-year agreements with Hyresgästföreningen, covering about 76,000 apartments, or about a quarter of the city’s population.

The Poseidon and Familjebostäder housing companies have a two-year agreement with an average increase of 5.35 percent this year and 4.45 percent next year.

For Andreas Hedberg, a single father, this means an increase in rent of about 400 SEK. Andreas’ rent has increased by about ten percent in one year – a total of SEK 740 per month. He is concerned about where ordinary people will live if the cost of rent continues to rise.

– I am lucky and can pay it. But if they keep raising the rent by 400 SEK a year, I don’t know where they think ordinary people are going to live. If it’s going to cost 10,000 kronor a month to live in Gothenburg, people will have to move, says Andreas in an interview with Hem & Hyra, the Tenant Association’s member magazine.

On social media like X, people are really angry about the sharp increases.

“As Galenskaparna sings: It should be nice to live, otherwise it doesn’t matter: And speaking of being able to live, soon we will be forced to live on the street for several reasons, me as a sick pensioner and the husband long-term sick / unemployed + both two debts. Grateful that so far electricity and water are included where we live”, a concerned citizen writes on Twitter/X.

“I find it difficult to understand HOW could HGF agree to these rent increasesAll 4.99% Rent increase which will mean About 500 kr more in rent for us About: 11.351 kr in Rent”, replies another.

“Desperate tenants”

Other housing companies, such as Bostadsbolaget and Gårdstensbostäder, have a local three-year agreement with the Tenants’ Association. An average increase of 4.5 percent will apply from April this year, with further increases of 4 percent in 2025 and 3.5 percent in 2026. The agreement covers nearly 28,000 households.

Sofi Bringsoniou, chief negotiator for the Gothenburg Tenants’ Association, is also concerned about the high level of rents and says that many tenants have contacted her in desperation over the ever-increasing costs. She is not satisfied.

– No, I mean the levels are very high. It hurts my stomach. We get calls from tenants who are desperate. Who have received a ten percent rent increase in just a few years: “How am I going to make it?” It’s not fun, says Sofi Bringsoniou.

In Malmö, the 64,000 tenants of the municipal housing company MKB received a two-year contract in January. As of February 1, 24,600 households will see their rents rise by 5.7 percent, one of the highest increases in the country.

Editorial Staff
editorial@nordictimes.com

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https://nordictimes.com/economy/soaring-utility-fees-put-pressure-on-swedish-households/

Economy

Soaring utility fees put pressure on Swedish households

Welfare collapse

Published 21 November 2024
– By Editorial Staff
Many Swedes today struggle to pay for basic living expenses.
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The prices for water, heating, electricity, and waste management have skyrocketed to record levels in 2024, placing many Swedish households under severe financial strain and, in the worst cases, risking eviction from their homes.

– These are unavoidable costs on monopoly-like markets, says Joachim Höggren from the Nils Holgersson Group, which surveys Swedish fees and charges.

– It’s clearly impactful, he adds.

In total, fees for district heating, electricity distribution, waste management, and water and sewage increased by 13 percent this year – the largest annual rise recorded since measurements began in 1995.

District heating prices rose by 15 percent, water and sewage by 14 percent, and waste management and garbage collection saw an average increase of 8.6 percent. Electricity distribution fees also increased by an average of 5 percent compared to last year, according to the report.

Suppliers cite higher fuel costs and increased investment expenses as reasons, but these explanations do not account for the significant price disparities between Swedish municipalities.

– The vast differences are the puzzling part, says Höggren.

Large Discrepancies Between Municipalities

In Nordanstig municipality, costs for water, heating, electricity, and waste services are nearly double those in Luleå – with an average of SEK 41,450 per apartment compared to SEK 23,111.

– They need to explain better. Otherwise, people don’t understand what they’re paying for, Höggren continues, noting that fees are expected to continue rising next year and beyond. The current low price increases seem to have little effect on this trend.

– What we’re seeing is that the increases persist. Many municipalities are raising their fees above historical averages, he concludes.

Editorial Staff
editorial@nordictimes.com

https://nordictimes.com/the-nordics/sweden/soaring-rent-hikes-in-sweden-threaten-to-leave-families-homeless/

Sweden

Soaring rent hikes in Sweden threaten to leave families homeless

Welfare collapse

Published 17 November 2024
– By Editorial Staff
Many Swedes testify that they have no ability to pay the rents that landlords are demanding.
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In recent years, many real estate companies have demanded annual rent increases of between 10% and 15% – if this becomes a reality in the future, many Swedes will be forced to leave their homes – and risk being left without a roof over their heads.

“I can’t eat enough to feel full, can’t go to the dentist, or similar. The pain threshold has been reached. Already cutting back on food and essential care. I’ve replaced one meal a day with porridge already”, reads one of many testimonies.

In the last two years, the country’s rent increases have averaged 4.1% and 5.0% respectively – and even though all rents for 2025 have not yet been fully negotiated, an increase of around 5% is expected next year as well.

Many landlords again called for rent levels to be raised by up to 15%, citing inflation, more expensive maintenance and higher costs in general, but this was not the case – at least not this time.

Landlords have often argued that double-digit annual increases are reasonable, that it is not only low-income earners who live in rented flats and that many people could easily cope with such a significant rise.

“Would mean disaster”

When the Swedish Union of Tenants asks tenants around the country how a double-digit rent increase would have affected them, however, a different picture emerges, and many testify that they would have become homeless if the real estate companies had their way.

“Unfortunately, I will have to terminate my contract”, reads one testimony.

“It would be difficult for me to stay. I’m retired and don’t have a large pension. There are so many other things that have also become more expensive. You try to buy as cheaply as you can but it’s difficult sometimes to make the money last a whole month”, says another.

“Poor pensioner that I am, it would mean disaster and moving if I would even be able to move”, explains a third.

“Working full-time and living in a flat”

Others testify how, despite working full-time and living in a small apartment, they would not have been able to cope with a rent increase of around 15% and would instead have had to look for a room and try to live with someone.

“It doesn’t feel good at all, I’m 50 years old, have a full-time job but won’t be able to live in my small first floor if I get such a big rent increase of 15%. Where are we going, when will someone put a stop to it?”

“Obviously a lot, as the rent for 44 square meters is already SEK 9,250. It’s hard to find anything much less than that. I’m 59 years old and I feel that being a lodger when you’re working full-time doesn’t feel very dignified”, says another tenant.

More families with children are being evicted

There are also those who talk about how they would be forced to move out onto the street if landlords next get their way, and how social safety nets are inadequate.

“It would mean that me and my children would not be able to stay as we are already struggling to make ends meet with previous rent increases and all the increased costs of basic living”.

Tenants also explain how they already stopped using medication that is “not essential”, eat with relatives and have stopped spending money on everything except rent, utilities and food – but that the money is still not enough.

“Can’t eat my fill, can’t go to the dentist and the like. The pain threshold has been reached. I already have to cut back on food and important care. Changed one meal a day to porridge already”, says one tenant.

“Is there a pill that can fill me up that’s covered by the high-cost protection?”, wonders another.

The testimonies are in line with the Swedish Enforcement Authority’s reports that evictions are increasing sharply in Sweden – and that more and more families with children are also becoming homeless. Despite the alarms, those in power have not presented any concrete solutions to the growing problem.

Editorial Staff
editorial@nordictimes.com

https://nordictimes.com/the-nordics/sweden/swedish-authorities-revoke-dentists-license-for-needlessly-pulling-teeth/

Sweden

Swedish authorities revoke dentist’s license for needlessly pulling teeth

Welfare collapse

Published 12 November 2024
– By Editorial Staff
A dentist in Gothenburg has been deliberately mis-treating patients for years (archive image).
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For several years, a dentist in Gothenburg has been treating patients incorrectly by performing extensive tooth extractions and implants without sufficient medical justification. The Swedish Health and Social Care Inspectorate (IVO) has now revoked the dentist’s license.

The dentist is accused of targeting patients of foreign origin, with the clinic employing Arabic-speaking staff to facilitate communication.

Gillette Oraham, one of the patients, had 20 teeth extracted in a single visit, reports the tax-funded Swedish Radio P1 program Kaliber.

– All removed at once. Going to remove them all, Gillette states that the dentist said.

IVO has examined the dentist repeatedly and found that the procedures were not medically justified. Marie Åberg is head of department at IVO:

– Yes, what we see is that unnecessary procedures have been carried out and that is a patient safety risk. Where there has been no basis for various treatments, she says.

Translation: First we read about women who had their wombs removed unnecessarily and now there are reports of a dentist in Gothenburg who has been pulling out patients’ teeth for no valid reason.
What the hell is going on?
There are obviously serious shortcomings in the Swedish health care system!

Deviating treatment profile

The treatment profile is extremely deviant, which, according to Åberg, may indicate financial motives, especially for utilizing state dental aid.

The Swedish Social Insurance Agency, which covers the costs of dental care above a certain amount, has also reacted to the clinic’s extensive treatments. Line Skjervik at the Social Insurance Agency is critical:

– You have to be able to show what treatment you have done and why, she says, and notes that there have been systematic shortcomings in the documentation.

However, the dentist himself believes that his patients often have particularly high treatment needs, as many come from war-torn areas.

– These are mainly people from war-torn areas who have extensive treatment needs, he explains, and believes that IVO’s review is biased against him.

Editorial Staff
editorial@nordictimes.com

https://nordictimes.com/the-nordics/sweden/swedish-homeowners-protest-against-the-energy-fiasco/

Sweden

Swedish homeowners protest against the “energy fiasco”

The energy crisis in Europe

Published 31 October 2024
– By Editorial Staff
Many Swedes testify that they can no longer afford to heat their homes.
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The Swedish Homeowners’ Owners Association (Villaägarnas Riksförbund) is now calling on its members to protest against Sweden’s exorbitant energy costs.

In recent years, electricity prices have risen sharply in Sweden and many households have found it difficult to pay their electricity bills. Before last winter, more than half of Swedes were worried about how they would afford to pay for their electricity.

Now the Swedish Homeowners’ Association has decided to protest against the country’s energy market and is urging its members to share how it has affected them.

– Enough is enough! Sweden’s energy market is fundamentally broken and politicians need to hear the people’s dissatisfaction and address the problems – once and for all, says Cecilia Reuter, President of the Swedish Homeowners’ Association, in a press release.

The aim of the protest is to show the consequences of the current energy market. Hundreds of stories have been received from the organization’s members who, among other things, testify to how they are forced to freeze when they can no longer afford to heat their homes.

“Something is very wrong”

“I won’t be able to afford heating at home if prices go up. Even last winter I had to turn down the heating and dress warmly to try to keep costs down. Should my daughter have to sleep in overalls so that I can afford both food and electricity?”, writes Mikael from Enköping, for example.

“We have 15–16 degrees indoors in winter. During the summer, we can’t afford to replace anything for heating the house because all the money has to be saved to survive the coming winter. When taxes are higher than the cost of electricity itself, it affects the food on the table, and the children have to walk on cold floors – that’s when something is very wrong”, says Emil from Härnösand.

In January, all the stories will be printed and placed on the desk of Energy Minister Ebba Busch.

– As Energy Minister, Ebba Busch is ultimately responsible for Sweden’s energy market. It is no good blaming previous governments or hiding behind EU directives. Voters are suffering under the pressure of a wild and unpredictable energy market. Please act, Ebba! says Reuter.

Editorial Staff
editorial@nordictimes.com

Facts: The Swedish Homeowners' Owners Association

The Swedish Homeowners' Owners Association (Villaägarna Riksförbund) is a non-profit consumer and interest organization for residents and owners of detached houses, i.e. villas and holiday homes.

The organization also has a business area, Samfällheterna, which offers security agreements with help, support and insurance to community associations.

In 2023, The Swedish Homeowners' Owners Association had 230 000 member households.