People who have their rent paid by social services have the right to keep their allowance even if they rent their home without an approved subcontract, reports Home & Rent.
The matter has been tried in several instances, which have so far all ruled in favor of the tenants. The judgment from the Supreme Administrative Court is precedential for similar cases.
“Neither the Social Services Act nor its preparatory work states that the right to assistance for housing costs must be dependent on the tenancy law regulations being followed,” writes the Supreme Administrative Court in its judgment.
Up until now, municipalities have had different routines for handling grants aimed at people who rent their homes black.
“We have received a clarification, which is positive in itself. It is always unsatisfactory when the legal situation is unclear. Now the municipalities get answers on how to handle this,” says federal lawyer Ylva Lindblom in a written comment to Hem & Hyra.
The industry organization Sweden’s public utility is critical of the Supreme Administrative Court’s judgment.
“It is offensive that tax funds end up in the pockets of people who destroy the white market and, in the worst case, also criminals,” says Åsa Schelin, the organization’s expert on housing issues, to the newspaper.