Danish rents could rise sharply for new tenants under a Liberal Alliance proposal that has become part of Denmark’s election debate ahead of the 24 March general election. The party wants to remove rent controls for older private rental homes when they are re-let, while keeping existing tenants protected. Economists and opposition parties say the change could push rents up by thousands of kroner a month in Copenhagen and other large cities, making access to housing harder for younger and lower-income residents.
What Liberal Alliance wants to change in Denmark’s rent rules
The change would mainly affect older private rental homes built before 1992, which are currently covered by rules that keep rents below market level. Liberal Alliance also wants to abolish parts of the Housing Regulation Act in the 79 municipalities where rent regulation still applies. The party presents the reform as a way to make the rental market more transparent and reduce the role of personal networks in getting access to sought-after apartments.
Why economists say Danish rents could jump for new tenants
The proposal is part of Liberal Alliance’s housing plan, which argues that the Danish housing market is too heavily regulated. In practice, the party wants market rents to apply when an older private rental apartment becomes vacant and is rented out again. Existing contracts would remain protected, but a new tenant moving into the same flat could face a much higher price.
Critics of the plan point to earlier calculations from the Danish Economic Councils as a rough indicator of what could happen if rents were liberalised. Based on those estimates, former chair of the councils and Aarhus University professor Michael Svarer said rents in Copenhagen could rise by about DKK 3,000 per month for new tenants in older apartments, or roughly €400.
The estimates cited in the debate suggest an average annual increase of around DKK 37,100 in Copenhagen, about €4,970, and DKK 14,400 in Aarhus, around €1,930. Nationwide, the average increase was estimated at roughly DKK 17,000 a year, or about €2,280. Economists have also stressed that these figures should be read as broad estimates rather than precise forecasts, but they still indicate a significant shift in housing costs if the rules are removed.
For landlords, the reform could mean a substantial financial gain. Svarer said that an owner of a Copenhagen property with ten apartments could gain close to DKK 500,000 a year in extra rental income, around €67,000, if rents were raised to market levels over time.
Liberal Alliance says rent controls distort the housing market
Liberal Alliance accepts that rents would rise for some new tenants, but argues that the current system distorts the market. Finance spokesperson Ole Birk Olesen has said older rental homes should gradually move onto the same pricing logic as newer rental properties, where rents are already set more freely.
The party says the current model keeps some tenants in apartments that no longer match their needs because the rent is artificially low. In its view, that reduces mobility, makes it harder for newcomers to find housing and gives an advantage to people with the right contacts. Liberal Alliance has framed the proposal as an attempt to reduce what it calls nepotism in the rental market.
The broader political argument is that freer pricing would eventually bring more housing onto the market and improve allocation. Supporters of deregulation say that, over time, a more open market could ease shortages. Critics respond that any long-term efficiency gains would come with an immediate affordability shock in the cities where housing pressure is already strongest.
Critics warn of a more unequal urban housing market
Housing researcher Martin Vinæs Larsen from Aarhus University has warned that the proposal would make it harder for lower and lower-middle income residents to enter the biggest cities. In expensive parts of Copenhagen, he said, the increase for some flats could be far higher than the average and exceed DKK 4,000 to 6,000 per month, roughly €540 to €800.
That would matter not only for students and young workers, but also for care workers, service staff and other residents on ordinary wages. Critics say the result would be a faster social sorting of cities, with wealthy households better placed to compete for central locations while others are pushed further out.
The proposal has also drawn criticism from other parties. Enhedslisten described it as a direct attack on tenants, while Venstre said it was concerned about what the reform would mean for people trying to rent an affordable apartment. One concern raised during the campaign is that even if current tenants are formally protected, changes in household circumstances could still create insecurity in practice.
Why the rent debate matters in Denmark’s election
Housing has become one of the clearest dividing lines in the Danish campaign ahead of the 24 March election. The debate is not only about economics, but also about what kind of cities Denmark wants: more flexible and market-driven, or more regulated and socially mixed.
For Liberal Alliance, the proposal fits a broader message about deregulation, property rights and freer markets. For its critics, it is a warning that a more liberal housing model would deepen inequality between insiders and outsiders in Denmark’s urban centres.
The immediate political question is whether the proposal could ever secure a parliamentary majority. But even without that, the debate has already exposed a central tension in Danish housing policy: whether rent regulation is an obstacle to mobility, or one of the last tools keeping major cities accessible to people on ordinary incomes.
