Denmark has put a cap on house rent increases over the next two years, in a move aimed at helping households struggling with the rising cost of living.
Under the country’s laws, landlords are allowed to raise rents in line with inflation, which was measured at nearly 10% in July – its highest level since 1983.
Under the new measure, however, rent increases are capped at 4% a year over the next two years and will apply to both existing and new rental agreements, as well as rents that have increased in recent months, the government said.
“It was vital for the government to take care of Danish tenants. They should not be driven from house to house because of the uncontrolled inflation we are experiencing at the moment,” said Minister of the Interior and Housing Christian Rabjerg Madsen.
According to the government, around 160,000 tenants are expected to be hit by the high rent increases.
The measure is one of several the country’s government has taken, including cash handouts to seniors on low incomes, aimed at curbing the impact on citizens of soaring inflation and high energy prices.