Net price index regulation in residential leases has become the new standard, but is it still permissible to simultaneously regulate the rent according to the value of the leased property? The question has not yet been clarified in case law, but now the minister is providing help in understanding the rules.

The Minister of Social Affairs and Housing's response on February 18, 2026 to the Danish Parliament's Housing Committee on the interaction between net price indexation and regulation according to the value of the rented property, given a long-awaited clarification for landlords on a central issue in residential tenancy law: SDoes an agreed net price indexation prevent later adjustment according to the value of the leased property? The answer is no – but the nuances depend on how the rent is set from the start.

Main messages from the minister's response

The Ministry states that an agreement on annual net price index adjustment according to Statistics Denmark's net price index can be entered into regardless of the underlying rent determination method. That agreement does not in itself preclude other regulation mechanisms.

• Rent determined according to the value of the leased property: The landlord may demand an increase if the actual rent is significantly below the value of the leased property. “Significantly” follows the practice of the Supreme Court at approximately 10–15 percent. This access is not subject to reservations in the contract, and a net price index agreement does not prevent such an adjustment.
• Taxes and fees on the value of the leased property: This adjustment can also take place in parallel with net price indexation.
• Cost-based rent: According to case law, the Ministry assesses that the landlord can make reservations for both annual net price index adjustment and adjustment for increases in taxes and duties. This requires an explicit reservation in the contract.
• Free rent determination: The Ministry assesses that in agreements on free rent, reservations can be made in the contract for regulation of taxes and duties - but at the same time notes that the courts have not yet taken a final position on this.

Practical consequences for landlords and tenants

For leases subject to the value of the leased property, landlords can combine net price indexation with subsequent adjustments when the rent turns out to be significantly lower than the market level. No contractual reservations are necessary here. On the other hand, landlords should, in the case of cost-based rent and free rent determination, ensure clear and explicit reservations for further adjustments, especially regarding taxes and duties, since this – in the Ministry's assessment – requires a contractual basis, and because court practice has not yet definitively settled certain issues.

Conversely, tenants should be aware that net price indexation does not in itself “lock” the rent. In particular, adjustments can be made to the value of the leased property – in addition to the index – if the distance to the current rent level is significant, and in the event of increases in taxes and duties.

Concluding remarks

The Minister's response clarifies that net price indexation can in principle coexist with other regulatory mechanisms. However, certain combinations still require explicit reservations. It is therefore still recommended to seek professional assistance in drafting leases and correctly regulating the rent.

For questions or advice contact lawyer (H) Søren Vasegaard Andreasen. Read more about our services within the lease here.