Kuupik Kleist, the Prime Minister of Greenland, has supported a move to increase rental prices by up to 50 percent on some government owned properties.
Kleist advised the Greenland parliament in an open debate session that the failure of the previous government to reassess rental prices for the previous two years, which it is supposed to do every year, had obligated the incumbent leaders to adjust prices accordingly. The increases will mainly apply to housing that is utilised by senior civil servants, which has been lying at below market rates.
The prime minister claimed that it was appropriate that “well-paid public servants paid rents comparable with those paid by regular renters.” It is envisaged that the homes would be renovated using the additional income generated by the rent rise.
Presently there is no scope within the existing budget to perform renovations on the properties but the forecasted additional charges would enable improvements in key areas such as insulation.
Jens B Frederiksen, the Housing Minister also added that it was a long-term goal of the government to enable people to purchase their own homes where possible. “This gives people renting single family homes and duplexes a unique opportunity to consider whether they want to take part in the “rent to own” programme,” Frederiksen claimed, adding also that prices for government owned properties would still remain lower than those of privately-owned apartments, even with the raised rental charges.