More people want to rent out their homes

Sweden’s new subletting rules appear to be encouraging more people to rent out their homes, but the market has not yet recovered to last year’s level.

The number of rental advertisements on Qasa, a platform where private landlords list homes and applicants seek rentals, has increased by nearly 23% since June. During the corresponding period last year, listings rose by just under 16%.

“Even though it is still early, there are clear signs that the legislative changes are beginning to have an effect. Supply, which had been declining, is starting to show a positive trend,” Qasa chief executive Maria Björkander said.

The rental market also follows seasonal patterns, especially around the start of the academic and working year. Björkander said the sharper difference this year suggests that factors beyond normal seasonal demand may be at work. Still, the overall number of listings remains lower than last year. In August, Qasa published nearly 14% fewer advertisements than in the same month a year earlier.

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Even though it is still early, there are clear signs that the legislative changes are beginning to have an effect. Supply, which had been declining, is starting to show a positive trend.

The second-hand market has contracted as mortgage rates have fallen and the housing market has gained momentum. The government says the new law aims to create a more flexible rental market and make more homes available. Most listings come from individuals renting out their homes after a change in their personal circumstances, Björkander said.

Ulrika Blomqvist, chief executive of the condominium association organization Bostadsrätterna, said subletting generates more questions for the group than any other issue. The organization represents 10,000 condominium associations. The rules may allow owners to rent out apartments for longer, including after earlier subletting, she said, but owners still need valid grounds and approval from their association.

Many associations are concerned that more sublets could mean more unfamiliar people moving through their buildings. “Associations are worried that more second-hand rentals will mean more unknown people moving around in the building. Unknown people usually create a feeling of increased insecurity,” Blomqvist said.

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Associations are worried that more second-hand rentals will mean more unknown people moving around in the building. Unknown people usually create a feeling of increased insecurity.