Swedish Parliament approves new legislation on rent-to-buy of residential property

On 26 May, the Swedish Parliament adopted a new Act on rent-to-buy (Sw. hyrköp) of residential property. The legislation introduces the possibility to enter into legally binding rent-to-buy agreements for residential properties.

In broad terms, a rent-to-buy agreement means that the seller undertakes to transfer ownership of a property to the buyer within an agreed period, while the buyer is granted the right to use the property during that time in return for payment of a rent-to-buy fee.

Under the new legislation, the seller/lessor may be either a business operator or a private individual, whereas the buyer/tenant must be a private individual. The Act enables, in certain specified situations, binding agreements on the future transfer of real property and site leaseholds.

The legislative package also includes amendments aimed at strengthening owner-occupied flats as a form of housing. Among other things, the changes expand the possibilities to take measures against owner-occupiers who cause serious disturbances to neighbouring residents.

The new Act and the related legislative amendments will enter into force on 2 July 2026.