10% Rise in Rents Predicted for Next Year

One of the major factors in the sudden increase is that interest rates on home loans are rising at the same pace, and landlords are passing on the expense.

At the same time, the higher interest rates have convinced many would-be homeowners to opt for a rental instead, at least for the moment. This had made competition for available rental apartments much tougher, and with increasing demand comes rising prices.

Rents have increased gradually for years, but this is the first time that they are expected to show a real spike.

The pressures of rising interest rates and the increased cost of energy are also expected to push up government-subsidised rental homes. At least the city of Helsinki intends to raise rents, but has not said yet by how much.

The Central Union of Tenants feels that the pace of rental increases is reaching unreasonable proportions. They agree with landlords' organisations in one thing, at least: that new rental homes are needed quickly.