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Housing market problem: Heated arguments are inevitable when tenants and homeowners meet. No wonder there were heated verbal fights on the SRF show “Arena” on Friday night. The only consensus: Rents in Switzerland are rising steadily. But this was for unity.
In the eye of the storm: On one side, Manfred Bühler (44), Senior Vice President and board member of the homeowners association of the canton of Bern, and FDP national councilor Beat Walti (54). On the other side: Michael Töngi (56), Greens National Assembly Member and Vice-President of the Tenants Association, and Jacqueline Badran (62).
It goes back and forth. Senior Vice President Bühler then calls for common sense: “I think this situation is not as dramatic as is generally portrayed.” By this he means the rising prices that households have to deal with when renting apartments. Bühler says the interaction between supply and demand more or less works. “There are various offers today: smaller and larger apartments, cheaper and more expensive places. “If you want to live in the center of Zurich or Zug, you have to be prepared to pay a high price.”
Then there is noise
This is too much for SP Vice President Badran. The landlord’s representative accuses Bühler of “cynicism”. He calls out “illegal behavior” by mentioning supply and demand. Bühler opposes this. The noise is increasing.
The fact is that in Switzerland what is called cost rent applies. The landlord is not allowed to earn any translation income from the rental property. The rent allowed must be based on the landlord’s expenses, including mortgage interest. A yield limit of 2 percent above the reference interest rate applies to newly rented properties. “Despite rent regulations, landlords are illegally stealing billions of francs,” says SP National Assembly Member Badran.
FDP National Assembly Member Walti talks about individual cases: “The general suspicion that the majority of homeowners earn too high earnings is wrong. After all, a sensible landlord doesn’t want to get into trouble with tenants.”
The housing market and rent issue are likely to cause much more debate in the near future. According to Raiffeisen’s research, the majority of Swiss tenants face the threat of further rent increases on April 1, 2024. Even a third increase by the end of 2024 is already foreseeable. The basis for this may be a further increase in the reference interest rate next month. (euro)
Source :Blick
I’m Tim David and I work as an author for 24 Instant News, covering the Market section. With a Bachelor’s Degree in Journalism, my mission is to provide accurate, timely and insightful news coverage that helps our readers stay informed about the latest trends in the market. My writing style is focused on making complex economic topics easy to understand for everyone.
