What does it mean?
Presumption rent (presumtionshyra) is an exception to the standard utility value system that applies to newly built rental apartments. For a period of 15 years, rent can be set more freely, based on negotiation between the developer and the Tenant Association before construction begins. The purpose is to make building rental housing more profitable by guaranteeing a rent level that covers the higher production costs.
After the 15-year period, the apartment transitions to the standard utility value system, and the rent can then be tested against comparable apartments. In practice, this means presumption rents are often significantly higher than rents in older stock — sometimes 50–100% higher for similar size and location. The system has been criticized for producing housing only high-income earners can afford, but defended as necessary to stimulate rental housing construction at all.
Key Points
- Applies to newly built rental apartments for a 15-year period
- Rent is negotiated between developer and Tenant Association before construction
- Often 50–100% higher rent than in older comparable apartments
- Transitions to the utility value system after 15 years
- Aims to stimulate new rental housing construction
Practical Tip
Before signing for a new-build rental with presumption rent, compare the rent with utility value levels in older apartments in the same area. Be aware that the rent likely won't decrease after 15 years — it gets "locked in" at a level that then becomes the utility value.
Legal Basis: Rent Negotiation Act, §§ 21–24
Based on content from Bofrid's Knowledge Bank