How housing allowance works, which information affects the decision and what you should check before looking for a home.
Housing allowance is state support for families with children and certain younger adults on low incomes. It may be relevant both for those who already have a home and those trying to assess what rent their household can afford. The linked sources are in Swedish because they concern Swedish law.
However, the allowance should not be treated as guaranteed income before Försäkringskassan, the Swedish Social Insurance Agency, has assessed the application. The amount is affected by the household’s income, housing costs, the size of the home, who lives there and, for families with children, the children’s living arrangements.
Who can receive housing allowance?
Families with children who live at home may be entitled to housing allowance. The support may also be available to younger adults who fall within the allowance’s age limit and have a low income. For younger applicants, it is not decisive whether their income comes from employment or whether they are studying; their overall financial circumstances are assessed under the rules.
The basic rule is that you must live and be registered as resident in the home covered by the application. There are exceptions, but these are assessed according to the circumstances. Försäkringskassan’s information for families with children describes the housing and family circumstances included in the assessment.
Rent is only one part of the calculation
In Bojakt’s current data, the median rent nationwide is SEK 9,200. This provides an indication of the available housing, but does not show how much housing allowance an individual household may receive. Försäkringskassan uses the eligible housing cost and weighs it against the other information in the application.
Not every item on a rent statement is necessarily treated as a housing cost. Costs for optional extras or other services, for example, may need to be separated from the rent itself. A clear breakdown of the rent is therefore important.
The allowance is based on estimated annual income
Housing allowance is initially granted on a provisional basis. Applicants estimate their household’s income for the entire calendar year. Once the final income details are subsequently known, the final allowance is determined.
If income is higher than estimated, the household may have to repay some of the allowance. If the income, rent or household composition changes, the details should therefore be reported to Försäkringskassan. This also applies if someone moves in or out, or if a child begins spending more or less time living in the home.
The page Report changes affecting housing allowance provides current information about which changes may affect the allowance.
Do not treat a provisional housing allowance as a fixed amount. Keep supporting documents and update the application when your finances or housing circumstances change.
Sublet accommodation may be covered
Housing allowance may be available for an approved sublet if the other conditions are met. The agreement normally needs to be in writing, and the subletting must be approved by the party authorised to grant permission. The applicant must also be able to provide evidence of the rent and show that the property is actually used as their home.
This is relevant in today’s rental market. Of the 20,356 available homes currently listed by Bojakt, 11,334 are sublets. This represents 56 per cent of the available housing, while 44 per cent consists of first-hand tenancies.
The rules for lodgers differ from those applying to people who sublet an entire home. It is therefore important to describe the type of accommodation correctly in the application and not use the terms as though they meant the same thing.
Housing allowance and a landlord’s requirements are separate matters
Potential eligibility for housing allowance does not automatically mean that a landlord will approve an application. Landlords may have their own conditions concerning income, type of employment, references, debts and which sources of income may be taken into account.
Boverket, the Swedish National Board of Housing, Building and Planning, states that property owners and housing companies have considerable freedom to decide how available homes are allocated and which conditions an applicant must meet. Read more from Boverket about housing allocation, waiting lists and priority access.
Waiting time affects the search for housing, not the allowance decision
Housing waiting lists and housing allowance are separate systems. Time spent on a waiting list does not confer entitlement to the allowance, and entitlement to the allowance does not provide priority access to a home. Allocation rules also vary between landlords and locations.
Not all first-hand tenancies require time on a waiting list. Bojakt’s current listings include 4,928 first-hand tenancies with no waiting time. Available homes are listed in a total of 1,238 locations, making it relevant to compare both rents and tenancy conditions in several places.
Documents to prepare
The supporting documents required depend on the type of accommodation and the household. Common documents include:
a tenancy agreement showing the property, rental period and agreed rent
a rent statement or breakdown showing what is included in the cost
approval for the subletting where this is required
details of salary, benefits, student finance, capital and other income
accurate details of who lives in the household and how children divide their time between their guardians’ homes
Check before signing an agreement
Prepare a budget that works even if the allowance is lower than you hope.
Ask the landlord whether housing allowance may be counted as income in the assessment.
Check that a subletting agreement is in writing and that the subletting has the required permission.
Make sure the rent and what it includes are clearly stated.
Use current income details and update them if your circumstances change.
Housing allowance can be an important part of a household’s finances, but the application and the search for housing need to be handled separately. Compare the rent with what you can actually afford, check the landlord’s requirements and use Försäkringskassan’s current information before making a decision.
