. According to him, is the ”no marknadsdröm”. As one of us, Lars Jonung, lived in Brussels for more than ten years, I can attest that Belgium is something of a dream come true for those who advocate market – and a nightmare for hyresregleringens defender.
”It is too good to be true,” exclaims Scocco on Belgium. Perhaps doubting Scocco converted if he enters Belgium's largest mäklarsite Immoweb. Right now, it is looking at least 500 vacant apartments in Brussels. Think Scocco this is a fake page so there are others to try. It is just to pick and choose in the large offer and decide how many rooms, location and the rental that fits.
If Sandro Scocco would get a job in Brussels, he may on the same day as he is going to the belgian huvudstaten write the contract on a home at a reasonable rent.
Can a regular american who travels from the country to our capital city to dream about the same day as they arrive to Stockholm to get a tenancy agreement on a rented home? The answer is no – it all know, reasonably even the Oecd.
the Reason is that Sweden since 1942 had a rent control that ruined the rental market. It comes to stand in the queue along with a half million other – preferably several years before you are born – and wait 10-20 years for a rental apartment in central Stockholm. A bizarre result of rent control.
We want this nightmarish situation shall cease as soon as possible. Scocco has no solution to enter more than a continuation of the Swedish model that has given us today's housing policy failure.
• first, they claim that there is no rent control. According to them, it was abolished in 1974 – formally it is correct, but the rent control survived in a new legal guise. There is still the issue of the regulation of rents. Why has the liberal parties recently negotiated with the social democrats to rent control for newly-built houses to be dismantled – if it does not exist?
• secondly, they say that rents ”will reflect the general values of a market in balance”. But if the market has been in balance, had we not had a housing shortage with year-long queues. Why are they talking in fishing? The reasonable conclusion should be to unleash the rents for the balance.
• third, they claim that the ”Gentleman of the South,” which we refer to in our article are in reality. Well, he is. If rent control was phased out and the rent was increased, would the subsidy of around 100,000 dollars a year that goes to him disappear. As the Fiscal policy council writes in its interim report in 2017, would at the same time, rents in Stockholm's suburban areas, reduce the. This injustice in the calculation of rents which the tenants ' association are fighting for would be history.
the Swedish union of tenants do not want to explain to the 17,8 billion is a measure of how much the tenants annually subsidised by rent control.
• fourth, the residents ' association hired the consulting company Ramboll to calculate what the introduction of market rents for rental properties would mean for the tenants in the county of Stockholm. The result is 17.8 billion per year in increased rents. But the Swedish union of tenants do not want to explain to the 17,8 billion is a measure of how much the tenants annually subsidised by rent control. This figure explains why the tenants so egotistical to safeguard rent control, despite the significant costs that the regulation creates for the Swedish national economy.
• fifthly, they say that a settlement would not give property owners some incentive to build new rental apartments. Of course, the higher profitability and higher rents means give property owners incentives to increase production of rental units. In addition, individuals have stronger incentives to invest in rental apartments in the form of condominiums – abroad one of the most common forms of ownership of the residence.
the Rent to be increased by, for example, a maximum of ten per cent per year up to the level marknadshyran. Only then will market rents apply. The housing crisis ceases entirely after the adjustment period.
Let us summarize our answers to the two replicas to our article. Whether Scocco or Linder and Elmgren acknowledges that a settlement of rent control is needed to overcome the housing shortage. The Swedish union of tenants being trampled on in the old grooves with the general slander of the market economy. Now it is time to change track and move to market rents – in the fight against the powerful special interests that the tenants ' association.
Justice and efficiency are favored better by a market economy than through price regulation. The Swedish union of tenants say they want to learn from history. In this case we wish to refer to opposing the soviet state's cases – a collapse that shows the consequences of failure to suppress the market economy.