Housing benefits for students are about to change – what should landlords know about the reform?
The housing benefits available for students will change in August when students will be transferred under the student housing supplement scheme. Unlike general housing allowance, the housing supplement for students cannot be paid directly to the landlord.
From 1 August 2025 onwards, students can get a housing supplement for students. This means that general housing allowance will no longer be paid to students after 31 July 2025. The change does not apply to students who live with their child or their partner’s child or to students who do not qualify for student financial aid. They can apply for general housing allowance as before.
How does the change affect landlords?
For landlords, the most significant impact of the change is that the student housing supplement can only be paid to the student’s own bank account and never directly to the landlord. However, some students will still qualify for general housing allowance, which can be paid to the landlord as before.
Another impact of the change that landlords should be aware of is that the majority of students will be paid a smaller amount in housing benefits than before. The student housing supplement is paid for active months of study, and the same annual income limit applies to both the housing supplement and student financial aid. Under the new scheme, students will qualify for the student housing supplement during the summer only if they actively continue their studies in the summer months. Due to the impact that these changes will have on students’ income, they may have more difficulties making rent payments.
Are you familiar with Kela’s e-service for landlords?
Kela’s e-service for landlords, which is available only in Finnish and Swedish, is intended for all landlords whose tenants are paid benefits by Kela regardless of form. This means that the landlord can be a company, an organisation, a non-governmental organisation, a wellbeing services county, a municipality or a private person.
Landlords can use the e-service to submit information Kela needs to pay benefits and to apply to redeem a rental security deposit.
Visit the e-service for landlords and start using it today.
Read more about the changes to student housing benefits.
Read more about Kela’s e-service for landlords (in Finnish or Swedish).
If the landlord has a business ID (y-tunnus) and uses a real estate management system, the system can transmit information on lease agreements to Kela electronically. Tenants do not need to provide information on their lease agreements to Kela if their landlord has already done so.
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