Summary of the case The Rental Housing Association expresses concern about the situation for housing seekers, especially in the big cities. It is becoming increasingly difficult to find apartments to rent. Both private and professional landlords sell their rental properties because the rental calculation does not add up. The proportion of secondary homes is the lowest recorded since the measurements began. Increased interest rates, rising operating costs and tougher wealth taxation make renting unprofitable in many cases. In central Bergen, Ragde Eiendom loses up to NOK 10 million a year on rentals, and will now sell 150 rental homes. Eiendom Norge CEO Henning Lauridsen believes that the government is taxing rental housing out of the market and that the housing policy has failed. Housing policy spokesperson Siri Gåsemyr Staalesen (Ap) disagrees that the government is contributing to the crisis in the rental market, and believes that there are no empty apartments in Norway now. The summary is made by an AI service from OpenAi. The content is quality assured by news’s journalists before publication. – Being a house seeker now, especially in the big cities, I wouldn’t wish that on my worst enemy, says Anne-Rita Andal of the Tenants’ Association. She says that the association talks to many desperate tenants. They are about to be forced out of the home they live in, and do not know where to move. Anne-Rita Andal is head of the Rental Housing Association. Photo: Johan B. Sættem / news Andal despairs that it is difficult to find an apartment or a room to rent in the big cities. There are many indications that the situation will get worse in the future. Rental properties are disappearing from the market Both private and professional landlords are now selling their rental properties, because the rental calculation does not add up. The proportion of secondary homes is the lowest recorded since the measurements began. But also the professional landlords are now selling rental properties. Increased interest rates combined with rising operating costs and tougher property taxation make renting unprofitable. In the center of Bergen, Ragde Eiendom loses up to NOK 10 million a year on rentals and will now sell 150 apartments. That’s what property manager Eirik Steimler says, who has previously spoken to BA about the company’s practical view that it is forced to sell the homes. The interest-bearing debt makes up about half of the market value. Eirik Steimler is property manager at Ragde Eiendom. Photo: Ragde eiendom – It is the interest and taxation on secondary homes that the politicians have now turned up. The politicians are only looking one step ahead, and that is to get more in the coffers. But they don’t see the end result, which is that the tenants are now left with the consequences of what they are doing, he says. – I actually think it’s absolutely terrible. It is sad that many will struggle to get hold of a new home, says Steimler to news. – Failed housing policy Eiendom Norge CEO Henning Lauritzen believes that the government is taxing rental housing out of the market. – I think in many ways the housing policy has failed. They have increased the tax on rental housing because they want fewer of them. At the same time, you make it much more difficult on the rental market, because then it becomes much tougher for those who are going to rent, he says. CEO Henning Lauridsen of Eiendom Norge is critical of the government’s housing policy. Photo: Johnny Vaet Nordskog Anne-Rita Andal in the Rental Housing Association despairs that there will be fewer rental homes. – I understand that it is not profitable for some landlords right now. In the situation we are in now, it is very worrying, because we are completely dependent on them, she says. – No empty apartments in Norway Political leadership in the Ministry of Finance is currently on holiday and refers to the Labor Party in the Storting. Housing policy spokesperson Siri Gåsemyr Staalesen (Ap) strongly disagrees that the government is contributing to the crisis in the rental market. – There are no empty apartments in Norway now. If professional landlords now have to go out and sell homes because of too high taxes, then they are selling to someone who is going to move into that home and live there themselves, she says. Siri Gåsemyr Staalesen is housing policy spokesperson in the Labor Party. Photo: William Jobling Given that the person who buys the apartment is a tenant before the purchase, a rental apartment will thus be released, Staalesen believes. Published 24/07/2024, at 11.05 Updated 24.07.2024, at 11.25
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Rental properties are disappearing: – Increasingly difficult rental market – news Norway – Overview of news from different parts of the country
