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Stockholm rents soar after new subletting law

Prices for subletting a flat in central Stockholm have jumped as much as 20% following recent changes to Sweden’s subletting laws, according to figures compiled by Swedish newspaper (Svenska Dagbladet).

Rents for sublet apartments in Stockholm County have jumped by 10% in the last year while in the first quarter of 2013, the cost of subletting a one-bedroom flat has risen by 19% compared to last year to an average of 11,241 kronor (£1,148).

The findings are based on figures taken from Swedish buy-and-sell site blocket.se (similar to Loot), a site often used by Swedes looking to sublet their apartments, and also shows that the number of listings of available flats has increased by 24% compared to the same period last year.

The phenomenon of rising prices and rising supply is unique, according to real estate professor Stellan Lundström of the Royal Institute of Technology (KTH).

‘If the supply increases, prices should fall. But the high population density and people moving into Stockholm skew the housing market because demand continues to rise’, he told the paper.

A new law that took effect on the 1 st of February this year gave apartment owners more flexibility in setting rents for sublets.

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