In Denmark, too, the rent law changes. The coronavirus is altering the way we are and how we live. Therefore, many governments have taken action to support the economy in the face of this difficulty. As is well known, the property market is in many cases the driving sector of a national economy. It is well known that in Denmark, the cost of living, and therefore of real estate, is not so low. That is why the government has decided to focus on rents. But how? To find out, read the next few lines with us !
But how did the reform come about? The aim has been to eliminate excessive rental prices, especially in large cities. The problem arose with an amendment to the 1996 law. This law stipulated that the landlord could increase the price of the rent to the tenant if changes were made from the previous one. The aim was therefore to promote the modernisation of private houses by improving the apartments. We are talking about a reform dating back to 1996, and we know that many houses needed a really intensive make-over. Initially the rent of these houses, was calibrated on the costs of maintenance. But the law still set limits. You couldn’t exceed 10% of the rents in the same area.
What does the new law establish instead, which puts a brake on this sudden increase in prices? The first step is that relating to the period under consideration. Quarantine. The government has established five years as the maximum margin between the owners and the renovation of the house. Within this range, a rent increase is not possible. The only exception is the energy classification. If it exceeds the initial value by at least three levels or changes of 402 euros per square metre have been applied, the five-year rule falls.
This is a real help for all those who are experiencing economic hardship. Despite everything, however, the banking sector seems to be quite opposed to this reversal. Local estate agents have also expressed their disagreement, saying that if the values attributed to houses subject to this law were to decrease, the market would be devalued.
We also think that most Danish houses were built between the 1950s and 1960s. That is why we understand that it is more than necessary to make changes frequently. But if they are not evaluated in time, the owners themselves could lose out. What should we do?
For the time being, it is not possible to make an assessment of how the situation will evolve. Nor is it possible to understand how convenient this government decision really is. To find out more, we just have to wait for new developments. Stay up to date on our portal !
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