(Bloomberg) -- The Danish government has ended talks on a proposal aimed at containing what it says are short-term property speculators such as Blackstone, after failing to secure a majority in parliament.
Housing Minister Kaare Dybvad of the Social Democrats had wanted a 10-year freeze on rent hikes after renovations to prevent landlords from overcharging tenants. But the government decided to end three months of talks on Wednesday after failing to persuade the Social Liberals, a business-friendly party that props up the minority administration in parliament.
“It’s a good day for Blackstone” and “a bad day for all of us who want to secure cheap housing,” Dybvad said in a tweet.
The opposition Danish People’s Party had also criticized the 10-year freeze, arguing that it would hurt renters and cooperative owners.
The Social Liberals, the Danish People’s Party and other opposition parties will now seek a deal that doesn’t involve any rent freezes, the Conservatives said in a statement. Together, these parties would have enough votes to get their own deal through parliament.
Dybvad has repeatedly singled out Blackstone, accusing the U.S. firm of exploiting “holes” in existing Danish laws to drive up rents.
Blackstone has said it owns too small a chunk of the Copenhagen market to materially influence rents. It says it’s a long-term investor with a goal of improving the properties it owns, and that it complies with the law.
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