Tenants of the Skotland Plads estate on Amager are set to vote on a new co-operative housing association, which could see them collectively buy out 72 apartments in their block by Christmas.
This would mean permanent resident rights, price-capped monthly fees, and a three-bedroom flat for 308.000DKK (£36,000) – for tenants who currently pay between 8.000 and 11.000DKK (£930 – £1285) in rent each month.
The initiative is backed by Copenhagen Municipality, which is set to finance the purchase of up to 40% of the apartments in the block if more than 60% of residents vote in favour of the co-op. If the vote fails, the block will be sold to a Norwegian investment fund.
Helle Dittmann, a member of the residents’ group, told Politiken: “We are trying to counteract the free market forces. With the municipality backing us, we can match their purchase offer.”
Co-operative housing has been present in Copenhagen since the early 20th century, and today makes up more than a third of the city’s housing stock. The city’s andelsbolig system effectively acts as a form of co-operative right to buy scheme, enabling tenants to form housing associations (andelsboligforeninger) and purchase a residential building as a group.
Once a co-operative is formed, residents can purchase a share in the association, granting them the right to live permanently in a specific dwelling or apartment within the property. They must then pay monthly fees which cover the building’s maintenance, shared mortgage, and other shared costs.
Co-ops are run on a one member, one vote basis, with residents able to vote in general meetings on decisions about renovations, building management, and other issues.
With the housing market in Copenhagen becoming increasingly more competitive and expensive, the andelsbolig system has faced challenging market reforms: co-operatives can now vote to increase the price of apartments or the value of shares, enriching existing members at the expense of newcomers. And, in recent years, stricter rules on tenants’ finances has seen fewer co-operatives be established.
This year, the city council voted unanimously to help fund the creation of new andelsboliger and to quickly process applications of support. This could see the municipality itself become a co-owner in new andelsboliger, using its financial clout to help residents form associations in the face of rising property prices.
If the tenants of Skotland Plads vote in favour of the proposal, it could then be the first among a wave of new housing co-ops in the city.
Aerial shot of Amager: Sentinel-2/Wiki CC
