The housing market in Sweden is facing major changes. While interest rates are stabilizing and housing prices are beginning to recover after a volatile year, attention is now turning to 2026. The big topic of discussion? The government's proposal for a new, more flexible private rental law.
In this article, we will go through what the report "A More Flexible Rental Market" (SOU 2025:65) means for you as you plan to rent out your property in 2026 and beyond.
What is the new private rental law?
The purpose of the proposed legislative changes, which are expected to come into force on July 1, 2026, is to make it easier and more profitable for individuals to rent out their homes. By increasing the supply of housing, the hope is to reduce the housing shortage and create a more dynamic rental market.
Here are the most important points you need to know:
1. Renting out up to two properties
According to the proposal, the new private rental law will cover the rental of up to two residential apartments at the same time. This gives individuals greater freedom to manage more properties without it being classified as professional activity with more complicated rules.
2. Freer rent setting upon moving in
One of the most significant changes concerns how the rent is determined. The proposal means that the parties should, as a starting point, be free to agree on the amount of the initial rent. However, to protect tenants, a protective rule against so-called "over-renting" is proposed, but the flexibility increases significantly compared to today's utility value system.
3. Clearer rules for deposits
Today, there are no specific legal rules for deposits in private rentals, which often leads to uncertainty. The new law proposes that deposits as security for the lease agreement should be clearly regulated by law. This creates a safer process for both landlord and tenant.
4. Longer rental periods for condominiums
For those who own a condominium, it is proposed that it will be easier to obtain permission from the board to rent out in the second hand for longer periods than is generally allowed today. This is welcome news for those who, for example, want to live in another location on a trial basis or wait to sell until the market situation is better.
