The roof was decided”to create peace for the country’s tenants at a time when inflation in July was estimated at 8.8%,” explained the government portfolio, and will apply to both existing and future rentals.
“It is crucial for the government to take care of Danish tenants. They do not have to leave their homes due to the rampant inflation we are experiencing”stated in the statement the Minister of the Interior and Housing, Christian Rabjerg Madsen.
The measure – the result of an agreement between the parties that make up the ruling coalition and their allies in Parliament – will prevent a sharp rise in rental contracts for 160,000 homes, which so far – in accordance with the Income Law – they had a sliding cap based on annualized inflation, which currently stands at 39-year highs.
Prime Minister Frederiksen – who will face elections next year but which could be anticipated – said last week, in a television interview, that “an increase in rents of 8% or 9% would be too much for many people, for example, students” .
“With the cap we will save the finances of many people and I am pleased that we can create that security in daily life for people who have feared being forced to move,” added for his part Halime Oguz, Parliamentarian and Housing Commissioner for the Popular Socialist Party, in local media.
Beyond the temporary cap, the Government is considering developing a new permanent index to regulate rents, which is intended to be independent of increases in energy and food prices.
European cities such as Berlin and Paris also have various regulations regarding rents, either in terms of their values or in the percentage of social housing that new urban developments must include.
Source: Ambito
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