2023-11-22 12:03:49
The government on Wednesday instructed the Department of the Economy (DEFR) to prepare a project which must be put out for consultation next summer. Objective: reduce in the short term the rates setting the amount of rent.
On June 1, a first increase in the reference rate to 1.5% already alerted tenant advocates. Introduced fifteen years ago, this rate followed a negative trend for a long time, but is now on the rise. According to several analysts, it should be increased to 1.75% on December 1, then to 2% over the course of next year.
This trend, coupled with generalized increases in prices, might lead to rent increases of around 15% in a relatively short period of time, warns the Federal Council.
Government proposals
To curb this surge and increase price transparency on the rental market, the government wants to act on several points. In particular, he proposes to reduce the rate intended to compensate for the increase in the cost of equity capital from 40% (current level) to 28%.
He also wants to remove the flat rate pass-through of general cost increases. Only duly certified increases will be authorized.
More clarity on paper
For better transparency, the previous and current levels of the reference interest rate and inflation must also appear on the initial rent communication form.
The possibility of invoking absolute cost criteria such as excessive yield or usual rents in the locality or district to contest rent increases must also be mentioned on the form for notifying rent increases.
These amendments will be submitted for consultation next summer. The Federal Council has also instructed the DEFR “to carry out a scientific evaluation aimed at verifying whether the current rent model, developed more than 40 years ago, (…) still corresponds to the realities of real estate financing”.
Asloca, which called on the Federal Council on Monday to act urgently, believes on Wednesday that these measures “are clearly inappropriate and come far too late”. Its president, State Councilor Carlo Sommaruga (PS/GE), asks the government in particular “to immediately and temporarily suspend the impact of the increase in the reference interest rate”.
>> Listen to the interview with Fabrice Berney, secretary general of Asloca Vaud, interviewed in La Matinale: Interview with Fabrice Berney, secretary general of Asloca Vaud / Le Journal Heure / 58 sec. / today at 09:04
Left-wing motions rejected
Last September, the left, which notably called for a moratorium on rent increases, failed in Parliament. During the debates on the various motions in question, the Minister of the Economy Guy Parmelin brushed aside the criticism of an inactive government in the matter.
He recalled the round table which took place in May between the Confederation, cantons, cities, municipalities and the construction and real estate sectors. An action plan containing 21 measures has been developed and is currently under consultation. A new round table is planned for the first quarter of 2024.
>> See also the 12:45 p.m. topic on left-wing motions: The National Council rejects four motions from the left aimed at taking new measures once morest rising rents / 12:45 p.m. / 1 min. / September 27, 2023
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