Linz (OTS) – After much back and forth, the federal government has decided on the rent brake for category and benchmark rents that was announced in August 2023. This is intended to curb the increase in category and benchmark rents and rents in non-profit housing in the coming years. “The new regulation comes too late, is inadequate and does not deliver what it promises
“, is the summary of AK President Andreas Stangl.
The new law has little to do with a rent cap, often incorrectly called a “rent cap”. Because there is no trace of a rent cap. Only the rent increases will be limited for a period of three years or the increases will be curbed from 2027. Guideline and category rents in old buildings as well as the basic rent for re-letting and the maintenance and improvement contributions (EVB) in non-profit housing may increase by a maximum of five percent annually starting on April 1, 2025. From 2027, the following rule will apply: If the index increase is more than five percent, only half of the part exceeding five percent may be claimed.
Tenants are even threatened with deterioration
Previously, the benchmarks were adjusted to the inflation rate every two years. Category rents only increased when the inflation rate exceeded the five percent limit since the last increase. If the inflation rate falls again, tenants to whom the new regulation applies will be even worse off than before due to the annual increase. The new regulation stipulates annual rent increases by law and does not bring any improvement for many tenants. The five percent threshold stipulated in the law is far too high, as experts estimate that inflation will be significantly lower next year. Even without anti-inflationary measures from the government, the economic research institute expects inflation to be below five percent from 2024.
Private rents can continue to rise unchecked
Furthermore, the so-called “rent brake” only applies to cheaper rents, while the high market rents of private landlords can continue to rise unchecked. There is still no relief in places where the highest rents are already being charged. Tenants who live in privately financed areas have been affected by rent increases of over 20 percent in the past two years.
AK calls for a real rent control for all rental apartments in Austria
„With the rent cap presented, the government is finally admitting that high rents have become a problem. The new regulation comes too late and is inadequate
“, says AK President Andreas Stangl. “There finally needs to be a real rent control for all rental apartments in Austria
“, appeals the AK President to the federal government. Rents should not be increased more than once a year and the increase should be limited to two percent. This does not cost any tax money and relieves the burden on all citizens in Austria thanks to its inflation-dampening effect.
Questions & Contact:
Chamber of Labor Upper Austria – Communication
Mag. Dominik Bittendorfer
+43 (0)664-82 37 978
dominik.bittendorfer@akooe.at
ooe.arbeiterkammer.at