Headwinds for New Rent Price and Housing Package
The new rent price and housing package includes the value protection of rental contracts and a limitation on rent increases. The draft law proposes that fixed-term rental contracts should last at least five instead of three years. By the end of the review phase, 38 statements were submitted, including 25 from institutions.
WKÖ: New Rent Price and Housing Package "Primarily Symptom Treatment"
The Chamber of Commerce (WKÖ) questions the statutory capping of rent prices as a measure to relieve tenants in light of high inflation. "The current regulation primarily represents symptom treatment, which moreover only has a positive effect for consumers," the statement reads. "In general, it should be noted that affordable housing is mainly created by increasing supply."
The Federation of Austrian Industries (IV) warned of "unforeseeable consequences" for tenancy law. The potential savings for tenants are "manageable," the IV stated in its response. Municipalities and domestic companies would earn less, with adverse effects on future maintenance and renovation, the interest group explained.
The Association of House and Land Owners (ÖHGB) expressed similar concerns. "Such interventions in the housing market endanger the long-term functionality of the private rental housing market," emphasized the ÖHGB. They would ultimately lead to a "shortage of affordable housing" because "necessary maintenance, renovations, and new construction activities are becoming increasingly unprofitable."
New Rent Price and Housing Package Does Not Go Far Enough for Union
The Federation of Trade Unions (ÖGB) expressed reservations. "In some parts, the planned changes do not go far enough and will hardly improve the financial situation of many tenants," the ÖGB cautions. Their demand: Instead of an automatic inflation adjustment, "rents should in the future be allowed to increase by a maximum of two percent per year for all rental contracts - whether in the regulated or free rental sector."
Despite improvements, "the fundamental problems unfortunately remain, as the measures are not comprehensive enough," stated the Tenant Association (MVÖ). Their main criticism is the limitation of rental terms: "While the extension of the minimum term leads to more stability, it does not change the structural imbalance created by the practice of endless chain limitations."
(APA/Red)
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