Improved right to compensation in case of expropriation of housing

Today’s compensation for the expropriation of residential properties is not sufficient in certain situations for property owners, tenants and tenants to be able to obtain an equivalent replacement home at a reasonable distance. This applies, for example, to a major societal transformation, where a large number of homes need to be used. In such cases, it can lead to people not having the opportunity to stay in the locality.

The government therefore proposes that the residents should have an extended right to compensation in case of expropriation of housing when there are special reasons for it. The compensation must refer to the increased housing costs that the new accommodation entails, to the extent that it is reasonable. The point of departure is compensation for a comparable home in the town and surroundings, where running costs are reimbursed for a period of five years.

– If someone’s residence is forcibly taken over by the state, there should be no doubt that the person is entitled to full compensation. People should not risk not being able to stay at a reasonable distance or in comparable conditions because the compensation is insufficient. The government’s proposal aims to ensure this and strengthen the protection of property rights, says Minister of Justice Gunnar Strömmer.

The proposals also mean a strengthened right for tenant-owners to expropriation compensation. Today’s rules entail a risk that tenant-owners will not receive full compensation for their tenant-ownership in the event of expropriation, because mortgage holders with security in the tenant-ownership property have the right to be paid in the first place. According to the legal council’s referral, condominium owners must be compensated to a reasonable extent for this through an extended right to compensation.

The changes to the law are proposed to enter into force on 1 January 2025.