Called on the federal government to act: this is how the Federal Council should mitigate the rent shock

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The increase is sharp. Housing costs for most tenants of city apartments in Zurich rose 6.67 percent in November. In addition to the three percent that homeowners are allowed to add due to the higher reference interest rate, there is an increase due to inflation and additional costs.

Tens of thousands of tenants across Switzerland are now facing rent increases of the same magnitude after the federal government first raised the reference interest rate on 1 July: from 1.25% to 1.5%. And the reference rate is likely to rise further in early December.

The Federal Council must act

The development is of great concern to the tenants association. This is why Geneva SP Council of State Association President Carlo Sommaruga (64) became active in the Parliament: According to the news of CH Media newspapers, he wants to curb the rent boom with the change in the law.

Today, the law allows landlords to increase rents by three percent for every quarter percentage point that the reference interest rate rises. That’s a lot, considering inflation, Sommaruga thinks. It demands the Federal Council to amend the law for a limited time and “substantially limit” the allowable rent increase. As long as inflation is above 1.5 percent or 2 percent in the last 12 months.

“Deadly vicious circle”

His Geneva SP colleague Christian Dandrès (42), who is also on the board of the tenants’ association, forwarded the same request to the National Council. Sommaruga speaks of a “deadly vicious circle” in which one finds himself now: because inflation raises rents, which in turn raises inflation.

However, the demand will be forced in the Assembly. Not surprisingly, homeowners are voicing resistance. “It is not permissible to change the rules of the game in the middle of the game,” as quoted by the hosts association (HEV) CH Media. The association argues that because you can only spend each franc once, higher rents do not automatically increase inflation. In addition, the Central Bank takes into account the effect of increases in interest rates on rents.

The association believes it is “just fair” that tenants have to bear the rising housing costs with a delay. He finds it out of place to talk about the “rent boom”. Sommaruga fears a “social crisis” due to rising rents. Economy Minister Guy Parmelin, 63, also warned of “socio-political tensions” if rents rise and people with modest incomes can no longer find homes. (a)

Source : Blick