2023-08-01 07:48:31
Union federation is finally calling for real action. Price increases of almost 25 percent in a year and a half mean that millions of people face payment difficulties
Vienna (OTS) – Hardly any other country in the euro zone has higher inflation than Austria – according to a flash estimate, it was seven percent in July and thus 1.7 percent above the average and almost five percent higher than in Spain, for example. One consequence of this: The next hammer is coming in rents: in August, the next increases will hit more than half a million households in Austria – by up to 5.5 percent! “All in all, for example, we see a price increase of almost 25 percent in less than a year and a half for category rents. For a 70 square meter apartment, this means an increase of a total of 790 euros for the year within 15 months,” calculates ÖGB economist Angela Pfister.
“It must be clear to all those responsible that this is simply not possible for many. Active politics must finally be pursued in order to solve this enormous problem, otherwise we will face much larger social trouble spots,” warns Pfister. “Rents are one of the biggest drivers of inflation, but instead of actively counteracting the enormous inflation, the federal government is simply allowing the next increases in August,” criticizes the ÖGB expert. Around 135,000 apartments are affected by the renewed increase in category rents, around 425,000 households in free rents – some with the sixth increase in two years.
Millions of people face payment difficulties
“More than 1.5 million people expect to run into payment difficulties by autumn because of the exorbitant increases in housing and energy costs. That is extremely dangerous,” continued Pfister. “People urgently need help instead of fantasizing about a wage-price spiral. A rent freeze must come now. This is the only way to fight inflation effectively. One-off payments are, at best, cosmetic measures that will not get anyone anywhere in the long term,” she states.
For more than a year, the Austrian trade union federation has been presenting measures that would ensure realistic, affordable rents and thus effectively combat inflation overall. “And we will not stop addressing this problem, presenting proposed solutions and applying pressure,” promises Pfister.
The ÖGB therefore demands:
– A rental price brake for all rents: Limitation of inflation-related adjustments and complete suspension in times of high inflation,
– the immediate elimination of time limits, because: contract extensions lead to rent increases well above inflation,
– More funds for the construction of new apartments, especially for non-profit building associations and social housing as well
– a vacancy fee for private dwellings.
Photos of the ÖGB experts for your reporting can be found under the following link:
Questions & contact:
Patrick Fischer
ÖGB communication
0664 53 444 13
patrick.fischer@oegb.at
1690876597
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