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How much can my landlord legally increase my rent by in Norway? 

Frazer Norwell
Frazer Norwell - [email protected] • 25 Aug, 2022 Updated Thu 25 Aug 2022 11:28 CEST
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This is the maximum amount that landlords in Norway are able to increase the rent by. Pictured are apartments in Oslo. Photo by Kamil Tatol on Unsplash

What's the maximum amount Norwegian landlords can increase tenants' monthly rent by? When are landlords allowed to increase rent? And is there any legislation to protect tenants against steep rent increases?

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The cost of everything from food and groceries to energy bills and mortgage repayments is rising in Norway, and many are currently feeling the squeeze. The cost of being a tenant in Norway is on the up too. During the second quarter, the cost of renting in Norway's four biggest cities rose 4.2 percent compared to a year ago. 

With the cost of everything becoming more expensive, are there any measures to stop the cost of renting spiralling out of control? 

In short, the answer is yes. The rules for increasing rent are covered by the Tenancy Act, which you can read here in English. The act is quite comprehensive and covers everything from rent increases to deposits.

Essentially, once you enter a rental agreement, your landlord will only be able to raise your rent in line with inflation or the consumer price index (CPI). There are slightly different rules for longer tenants, but we'll cover more on that below. 

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Additionally, this cannot be done within the first twelve months of the tenancy, meaning once the ink has dried on the paperwork, you are shielded from rent increases for a year. 

And one last thing to note is that the landlord will need to give you at least a month's notice that the rent will be going up. 

The bad news for tenants, and all consumers, is that inflation in Norway is quite high at the moment. Inflation in Norway has not been higher since 1988, and the country's CPI rose by 6.8 percent between July 2022 and the same month last year, the latest figures from Statistics Norway (SSB) show. 

For those already a year into their tenancy, who haven't had a CPI adjustment to their rent yet, it means that landlords can raise the rent by just under seven percent. However, this figure is subject to change and could rise even higher as new inflation figures are published. 

Furthermore, there doesn't appear to be any plans to place a cap on the maximum amount that rental prices can be increased by, as has been seen in other countries, such as Denmark, where the government announced plans to limit rent increases to four percent

Longer-term tenants are subject to slightly different rules, potentially allowing for much more significant rent increases. 

If the rental agreement has been ongoing for more than two and a half years, the landlord can also raise the rent in line with the average market price if the average price has grown beyond what you are currently paying.

The rent can only be raised to what's known as the "prevailing rent level". The prevailing rent level is calculated by comparing the property with places of a similar standard and size in the same location. 

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This increase can only be introduced, at the earliest, six months after the tenant has been given written notification of the landlord's intention to increase the rent. Essentially this means that rent can't be raised beyond the CPI until after three years.

While this does open up the potential for much larger rent increases, the "prevailing rent level" rule does prevent rent from being hiked to above what the property would be worth on the open market. 

READ MORE: How to resolve disputes with your landlord

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Frazer Norwell 2022/08/25 11:28

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