October 1, 2022

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Local Government Minister asks owners to show restraint - VG

Local Government Minister asks owners to show restraint – VG

Wait: The Minister of Local Government is asking landlords not to raise prices too much.

The rental market in major Norwegian cities presents a challenge, especially for students. Sigbjørn Gjelsvik (Sp) asks owners to exercise restraint in raising prices too much.

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Recently, there have been challenges in the rental market in major cities with few places to live and high prices.

On Friday morning, Local and County Government Minister Sigbjørn Gjelsvik (Sp) met with several players in the rental market to discuss the situation with few homes and high prices.

The meeting was attended by, among others, the Tenants Association, Huseierne, Norsk Eiendom, the Norwegian Consumer Council and the Norwegian Students’ Organization (NSO).

I find that the vast majority of owners are responsible people who contribute to safe and good living conditions. I am also very concerned that the owners will show restraint in raising prices too much. They have a set of regulations that state that unreasonably high rent compared to the market rent in that area is not allowed for this type of apartment, Gjelsvik tells VG.

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He wants the European Union to dominate the rental market

The Norwegian student organization wants the EU to dominate the rental market, says leader Micah Marie Goodall Dam.

– We know that there are many students today with poor living conditions. One in five students in our survey reported that they had rot, moisture damage, pests and a lack of escape routes, she told VG.

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Student Leader: Leader of the Norwegian student organization Maika Marie Godal Dam.

– These are serious conditions. We need an impartial third party who can contribute and ensure that students can talk about such circumstances and that action is taken on the part of the owner, she says.

The proposal for EU control of the rental market would include mandatory control of homes – as we currently do with cars – to ensure they are safe and according to established standards.

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Several thousand students line up for rent from student co-operatives in student cities. In Stavanger and Oslo, the price increased more than the student’s salary increase.

The meeting was attended by Morten Andreas Mayer homeowners in Husseini.

There is no doubt that it is a challenge related to both insufficient access to rental housing and the growth that is challenging for many tenants, he says.

It is believed that the increase in rent is due to the higher cost of renting and owning a home.

– He believes that the authorities should contribute to curbing the growth in housing costs.

– We do not exclude the fact that there are landlords who do not behave properly, but it is important to say that in the vast majority of rentals there is a good relationship between the owner and the tenant, he says.

Meyer claims especially those who rent privately, ie a plinth apartment or a secondary house.

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– Bidding rounds for a rental apartment

Inger Lise Bleiverkett, President of the Consumer Council, explains that the housing market as it is today is not working. She says the rental market is demanding to be indoors.

– To me, it’s quite clear that we have to do something about the way we organize this rental market. We need more stable conditions. I think the minister listened and noticed.

Obvious: Inger Liz Bleiverket, president of the Consumer Council

The Consumer Council wants a new rental law, which largely differentiates between private homeowners and professional rental companies.

Blyverket says it’s hard to get rented accommodation. According to the Consumer Council, it is not landlords who compete for tenants, but the other way around.

– And then we see somewhat detrimental results with both rounds of bidding for a rented apartment and that you have to take many other actions such as childcare, garden cleaning and also now examples of having to take care of the elderly in order to actually get a house or a house.

The rental price has increased by NOK 2,000 this year

Home views are dropping, and prices have jumped a huge leap right before the studies begin. The average price for renting an apartment in Oslo has increased by more than 2,000 NOK since January.

It’s common for prices to be somewhat higher in the summer half of the year than in the rest of the year, but the average price appears to have fallen over the past six months, according to Jørgen Hellestveit at FINN Eiendom.

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Overall: Local Government and County Minister Sigbjørn Gjelsvik met with representatives in the rental market.

Apartments are the most expensive

In Oslo the increase in rent for apartments, dormitories and rooms in collective housing was the highest, but prices are also rising in other cities. In Bergen, figures from FINN show prices are up about NOK 1,800 from last year.

The table shows the average rental rates for an apartment in July 2021 and July 2022. The figures are from FINN.no:

In Bergen, in July 2021, it costs an average of 11,995 NOK to rent an apartment per month, while in the same month this year the prices are NOK 13,472. The differences for April, May and June last year and this year are around 1,000 SEK.

About the same thing applies in Trondheim. In one year, the average price for renting an apartment increased by about 1,500 NOK, according to FINN statistics. In Stavanger, the price has risen by about NOK 600 in the same period.

For the record: Finn.no is owned by Schibsted, which also owns VG.