– The triggering reason has been the recent interest rate increase, and of course heavier taxation of secondary homes. Odd Arne Markegård is one of many landlords who either have or are considering raising the rent on their rental properties. In the last year, the rental price has gone up by 7 per cent, and in Oslo by 11.9 per cent. A combination of increased interest rates, price increases and increased taxation means that the cost of housing has risen significantly. So much so that several consider that it is no longer worthwhile to rent out. Fear of a black market for rental properties – When we choke off both the opportunity and the profitability of investing in rentals by increasing wealth taxation to 100 per cent, and on top of that there are increased prices and interest rates, then the math doesn’t add up. That’s what Stian Carlsen, managing director of the rental company Utleiemegleren, says. The vast majority of residential units that are rented out are so-called secondary homes, i.e. homes that the owner does not live in. While primary homes must be taxed at 25 per cent of the home’s value in property tax, the rate for secondary homes is 100 per cent of the home’s value. The letting agent’s Stian Carlsen fears a non-functioning rental market in the future. Photo: Utleiemegleren / Utleiemegleren Since 2019, the proportion of secondary homes in Oslo has fallen from 17.5 to 15.1 per cent. In the same period, the valuation of secondary homes has increased from 90 to 100 per cent. In 2015, only 60 percent of the home’s value was counted as assets. – In the private rental market, we hear that there are bidding rounds, and you don’t have to go any further than Sweden, where there have been horror examples of people paying up to a million kroner under the table, says Carlsen. He fears that the combination of increased prices and fewer available rental properties will create a black market where “buying” of bidding rounds and money under the table will become the new normal. Will prevent speculation – We have made it less attractive to speculate in secondary housing. It is best that people own the home they live in. Siri Gåsemyr Staalesen is housing policy spokesperson for the Labor Party. She believes that preventing housing speculation is important to ensure that people get into the housing market. And she does not believe that lowering taxes will help rents. Siri Gåsemyr Staalesen (Ap) believes lower tax for landlords is not the right way to ensure people a place to live. Photo: Line Tomter – Increasing the tax will not result in fewer secondary homes. And I think it is extremely naive to imagine that a person who has invested in a home she does not own will cut the rent if the tax is reduced, says Gåsemyr Staalesen. The Conservative Party does not want a comprehensive tax change, but member of the finance committee Helge Orten points out that the current government has raised the wealth tax from 0.85 to 1 per cent. – The tax base was different when we were in government, including a lower rate of wealth tax. Overall, home owners and secondary home owners probably get on better with us than the current government As in other tax matters, Helge Orten (H) is keen to lower wealth tax. Photo: Ksenia Novikova Markegård has no plans to sell off just yet, but does not think it will be cheaper for either landlords or tenants anytime soon. – With increased interest costs, property taxation, section taxation, it eats up a lot of the profit.
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– The tax must be reduced – news Norway – Overview of news from various parts of the country
