Caritas warns of risk of poverty: Rent increases also affect small and medium-sized businesses

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Rents could rise by 3 percent soon, with the reference interest rate rising to 1.5 percent. This made the situation worse in terms of housing costs. “Caritas Switzerland sees that low-income households are at an increased risk of poverty,” charity organization Caritas Switzerland writes in a statement. Because in addition to higher rents, households will soon have to deal with higher electricity bills.

Caritas calculates: A family of four paying rent of 1,800 francs per month will have to pay an additional 54 francs in the future, simply because of the reference interest rate. In addition, there was an increase of around 37 francs due to inflation. And ancillary costs would increase by an estimated 45 francs with a standard oil heating system. “This results in an additional cost of 136 francs per month to live alone,” the charity writes. It makes 1632 francs a year.

Budget shrinks

But other price increases are also straining the budget: groceries and everyday consumer goods have become more expensive, and health insurance premiums have also increased significantly. “For the lowest income households, these significant additional costs for housing are bad news,” said Andreas Lustenberger, 36, board member of Caritas Switzerland.

Affected families, for example, may find it increasingly difficult to save on children’s leisure activities or “forgo a balanced diet,” as Caritas writes.

It doesn’t just affect low-income people

Caritas fears that this development will also affect the lower middle class. “People who have lived above the poverty line are increasingly affected.” The charity is therefore calling for more affordable housing and rent subsidies.

According to a recent study by real estate consulting firm Wüest Partner, rental households in Switzerland spend on average a quarter to a third of their gross disposable income on housing costs. The rate is generally higher in poor households – this is especially common among retirees. Roofing organization Budgetberatung recommends that housing costs do not exceed 25 percent of net income.

Increased risk of abuse

By estimates, rent increases of up to three percent could affect around half of Swiss households. Anyone who has benefited from lower rents when the reference interest rate was reduced in the past. The tenants’ association is now warning against abused rent increases. Thus, the landlords who did not have the right could increase the rent. Therefore, according to the association’s advice, tenants should examine it very closely.

Tenants must appeal to the competent arbitration board within 30 days of receipt of the notice to defend themselves against unfair increases.

The landlords’ association also reacted to the new reference interest rate, pointing out that the rent increase should be reported to landlords using a canton-approved form. It also points out that the increase due to the reference interest rate only applies if the current rent is based on less than 1.5 percent. (smt)

Source : Blick