Housing associations are going bankrupt on an ongoing basis

Published 6 September 2024 at 12.01

Domestic. So far this year, 85 condominium associations in Sweden have gone bankrupt, which is a record since the 1990s crisis.

Share the article

TwittraShare

In the event of a BRF bankruptcy, the homes are converted into rental properties with a new owner as host. The old owners can stay, but they lose their condominiums and everything that has been paid for the respective condominium.

You also still have your debts for the mortgage. A condominium association that goes bankrupt therefore entails large financial losses for the condominium owners.

The Eco-Crime Authority states to SVT that builders nowadays often remain on the boards of newly formed condominium associations and do not allow the residents to form a board or gain insight into the finances. It could be a sign that bankruptcy is close.

In a newly built residential area with semi-detached houses in Södertälje, it looks that way. An auditor has quit and some annual reports are not being handed out. Everything indicates that the association has large debts that have been covered up. When SVT tries to get hold of the board, no one wants to talk.

At the turn of the year, 370 associations had debts with the Kronofogden, according to a compilation from SBC. That is an increase of 298 percent in ten years, when 93 associations had overdue debts at the end of the year.