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Housing in this country has become more expensive for a significant portion of Swiss renters. One in three people have received a rent increase since June 2023. This emerges from a study in which online comparison portal bonus.ch surveyed 1,600 Swiss people.
The German-speaking Swiss were particularly hard hit; 45 percent of tenants had to pay more for housing. According to the survey, this rate is 25 percent in Italian-speaking Switzerland and 21 percent in French-speaking Switzerland.
The increase in the mortgage reference interest rate that homeowners can pass on has opened the door to higher rents. In June 2023, the Federal Housing Office (BWO) increased the reference interest rate by a quarter point to 1.5 percent. In December, there was another increase to 1.75 percent.
The latest figures on arbitration proceedings show that not everyone accepts the increased rent without resistance. According to BWO, arbitration cases increased by a full 80 percent last year compared to 2022.
At the beginning of the month the BWO once again decided on the reference interest rate and decided against further increases. This means most tenants can breathe a sigh of relief for now. According to most economists, there will probably be no further increases this year. Because they expect significant interest rate cuts from the Swiss National Bank.
However, some tenants may still receive an increase if their landlords have not yet passed on the most recent increase. Landlords are authorized to increase rent by around 3.2 percent over a reference interest rate of 1.5 percent from April 2024, taking into account inflation and general cost increases. Currently, an increase of up to 10 percent in rent is possible for tenants whose reference interest rate is 1.25 percent.
The survey also shows that a large proportion of Swiss tenants are at risk of under-insuring their property. Two-thirds of respondents stated that they do not adjust the cost of their home contents insurance each year according to their furniture. German-speaking Swiss are the most negligent. 74 percent of them give up redetermining the amount of home contents insurance every year. This rate is 58 percent in French-speaking Switzerland and 63 percent in Italian-speaking Switzerland.
We are talking about underinsurance if the actual value of household goods is higher than the amount stated in the household contents insurance. In this case, insurance will not cover the entire financial loss in case of damage.
The survey also shows that a large proportion of Swiss tenants are at risk of under-insuring their property. Two-thirds of respondents stated that they do not adjust the cost of their home contents insurance each year according to their furniture. German-speaking Swiss are the most negligent. 74 percent of them give up redetermining the amount of home contents insurance every year. This rate is 58 percent in French-speaking Switzerland and 63 percent in Italian-speaking Switzerland.
We are talking about underinsurance if the actual value of household goods is higher than the amount stated in the household contents insurance. In this case, insurance will not cover all financial loss in case of damage.
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.
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