
Royal Shock: King's Rent Hike Sparks Outrage on Djurgården
Residents of Djurgården continue to express outrage over the king's dramatic increase in lease fees. They claim that Prince Carl Philip lives rent-free and that royal staff received only a two percent rent increase, while they face hikes of hundreds of percent.
"I'm getting a cold shower; my lease is increasing by over 500 percent," says Gustaf Bodin.
The Royal Djurgården Administration states that the increases are "not unreasonable" and expresses its "greatest understanding that the hikes cause concern."
Emotions are running high on the exclusive Djurgården in Stockholm, where residents are affected by what they call "shock increases" in lease fees, as first reported by Expressen.
The Royal Djurgården Administration (KDF), which manages the king's right of disposition, raised the lease by hundreds of percent. Among those who appealed—and were rejected—are many well-known and wealthy individuals, including artists like Abba's Benny Andersson, business leaders, diplomats, and others.
"Getting a Cold Shower"
"I'm getting a cold shower; my lease is increasing by over 500 percent. It's a significant increase for me. I'm definitely not a wealthy person," says lawyer Gustaf Bodin, who lives in the area.
"The agreement from the 1800s that gives the king the right of disposition is not based on the area being a source of income for the court but on the fees covering maintenance. Even ten years ago, the court made high demands but came to their senses, so the lease increase stopped at 33 percent," he says.
Patrik Engellau, former chairman of the Royal Djurgården Residential Leaseholders Association, says:
"The average increase is 450 percent."
He and his wife Catherine Engellau live in a small house on a plot that will see an increase from 201,420 kronor to 430,000 kronor per year. The increase affects several other small homeowners on the same property.
"They Refuse to Negotiate"
He is strongly critical of the large lease increase and claims that the Djurgården Administration has overridden the residents by refusing to negotiate.
"It's a shock increase. They refuse to negotiate; they haven't even talked to us," he says.
The Royal Djurgården Administration (KDF) counters the criticism, stating that the goal "has always been a fair and transparent process." Magnus Andersson, castle bailiff and head of KDF, writes that they want a "uniform agreement" and therefore have not negotiated with individual leaseholders.
"The renegotiations occur at long intervals—10 years—making some increases seem dramatic, but they must be seen against the backdrop of Stockholm's rapidly changing housing and real estate market, including dramatically increased transfer values on Djurgården," writes Magnus Andersson and continues:
"In this light, the increases—though certainly very noticeable in many cases—cannot be seen as unreasonable... However, we have the greatest understanding that the lease increases cause concern."
He writes that all lease revenues and rents on Djurgården go towards the maintenance of the area, which is thus self-financed.
Accusing the King of Being "Greedy"
A resident, who wishes to remain anonymous, criticizes the king and KDF on several points—accusing the king of being "greedy."
"The king does not own the land but acts as if he owns Djurgården. This greed is not particularly becoming. The king's demands for shock increases in leases of several hundred percent are justified on highly arbitrary grounds and because the system needs to be 'modernized.' It should be based on an index agreed upon at the last renewal of the agreement," writes the leaseholder and continues:
"Prince Carl Philip pays no lease for his residence. The service residences for court staff on Djurgården are heavily subsidized, among other things, by us leaseholders, and they received a rent increase around the turn of the year of just over two percent."
The court responds that the staff's residences are not subsidized.
"KDF manages approximately 120 rental residences that primarily go to the Court's employees. The rent is set according to the utility value principle, which is negotiated between the Tenants' Association on Djurgården and KDF. There is no subsidy of the rents," writes Ulrika Näsholm from the court's information department.
Lease Tribunal Rejected Appeals
The Rent and Lease Tribunal rejected all the residents' appeals in a decision on Thursday, confirming the lease increases. The residents now plan to appeal this decision in court.
The king's right to decide who should live in houses and apartments on royal palace areas like Djurgården and Haga dates back to an agreement from 1809. The so-called right of disposition applies "for eternity," meaning forever.
Special rules apply to those who rent from the king. Among other things, they give up the security of tenure, which is found in the rental law.