Prime Minister Mette Frederiksen has proposed both a temporary ceiling for rent increases due to inflation, which is expected to affect hundreds of thousands of residents in Denmark, and an investigation into the errors in the current rent increase system.
– Some people are currently seriously worried about their rent, and that should not happen in Denmark, says Frederiksen to TV2.
Sky-high rents
Under the current system, rent increases are allowed in relation to the level of inflation. Based on the so-called net price index, landlords have been within their right to raise rents by up to 8.8 percent between July 2021 and July 2022.
“A rent increase of 8-9 percent would be too high for many people: for example, students,” said Frederiksen.
A ceiling has been set on rent increases
The government will set a ceiling on rent regulation for private rental properties of up to 4 percent over two years.
According to Frederiksen, this is because we are in an “extraordinary period” where Danes are already under economic pressure due to record high inflation.
In addition, the government proposes to introduce another index to replace the Net Price Index, which is only now being used to regulate rent.
“We will investigate whether it is entirely reasonable to take rising food prices into account when determining the rent. Because it has nothing to do with rent,” said Frederiksen.