The Danish government's efforts to combat "rent hike" home speculation has failed!

The Danish government's proposal to prohibit large corporations from investing in rental property, hence raising rents, has failed.  اعلانات

Following a breakdown in legislative negotiations, opposition parties and the center-left Social Liberal (Radikale Venstre) have banded together to prevent the government's proposal from being implemented.

In a statement, the opposing parties said they seek an intervention that does not depreciate existing property, does not involve the state in financing repairs, and does not harm cooperative housing [Danish: andelsboliger, ed.].

Without the involvement of the government, the opposition parties and the Social Liberals will try to pass laws to that goal.

“We feel that such an intervention is realistic,” the Liberals, Danish People's Party, Social Liberals, Conservative Party, and Nye Borgelige (New Right) stated in an united statement.

The parties have a total of 91 seats in parliament, which is enough to enact legislation.

According to Ritzau, a suggested cooling-off period for rent hikes was a major stumbling block in the negotiations.

Rents could not be increased owing to renovations for seven years after a home was sold, according to the proposal. The goal was to discourage short-term speculation by purchasing a property, renovating it, and then boosting rents in order to make a huge profit in a short period of time.

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The government's proposed new regulation would have been based on section 5.2 of the Danish Housing Regulations Act (boligreguleringsloven). If a landlord invests 250,000 kroner in a pre-1992 property, the clause allows them to drastically hike rents.

Minister for Transport and Housing Kaare Dybvad "just failed to find a majority" for the government plan, according to Liberal party housing spokesman Heidi Bank.

Dybvad said the cooling-off period was the only way to stop short-term speculation on the rental housing market during a press conference earlier on Wednesday.

“On the speculative block geared at short-term investors, we disagree. “It's my duty to make sure this happens, so I can't close a deal without it,” Dybvad explained.