Danish capital's potential mayor advocates for rental price limitation in Copenhagen
Copenhagen Mayoral Candidate Proposes Rent Cap for New Homes
In the upcoming local elections on November 18th, Line Barfod, the lead mayoral candidate for the Red-Green Alliance in Copenhagen, has proposed a cap on rental rates for housing built after 1991.
Barfod argues that rents have become unmanageable in the city, with newly built homes in the capital being let at excessive prices. She believes there is room to bring the rents down, as she observes a difference of several thousand kroner a month in rent between private rental housing and public housing in areas where both are being built.
Currently, market rent applies for flats built after 1991, meaning landlords are free to set the rent. However, Barfod suggests that rent should only cover the cost of the building itself and 'a reasonable return.' This proposal would not apply to all homes but would affect those built after 1991.
The Red-Green Alliance, which took the largest vote share in the city in the last local elections in 2021, with 24.6 percent, currently holds 15 of the city's 55 council seats. The party aims to win the lord mayor seat in Copenhagen, a goal they have explicitly stated earlier this summer.
If the rent cap on newer homes is to become a reality, it would require the backing of a majority in parliament. Barfod notes that currently, it's big investment funds that decide the rent level in Copenhagen, making it difficult for people with ordinary incomes to find affordable homes.
The Red-Green Alliance's proposal for a maximum rent for rental apartments is not explicitly mentioned in the provided search results as a policy for the upcoming parliamentary elections. However, the party has been vocal about addressing the city's housing affordability issues.
In contrast, for buildings constructed before 1991, rent can rise if the apartments are renovated, according to the rules. Barfod references rules for buildings constructed before 1991, where rent is based on operating expenses plus a modest return for the owners, as set out in Denmark's tenancy laws.
Barfod did not give a specific figure for how much rent should be charged, but she emphasises that high rents cannot be explained by the claim that housing in Copenhagen was bought or built at such high costs that owners have no choice but to charge current market rates.
This proposal by the Red-Green Alliance's lead mayoral candidate is a significant step towards addressing the housing affordability issues in Copenhagen. The outcome of the upcoming elections will determine whether this proposal becomes a reality.
