The director of the Swiss Federal Office for Housing expects rents to rise by more than 15% between now and 2026.
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Keystone-SDA
A third increase in the benchmark interest rate is possible in the next one to two years, Martin Tschirren said in the newspaper Blick on Saturday.
If the benchmark interest rate goes up by 25 basis points, landlords can increase rents by 3%. But, said Tschirren, “40% of the increase in rent since the last rent adjustment can be added to this”. He expects the next interest rate increase to take place in December 2023 or March 2024.
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Swiss face rent hikes with first mortgage gauge jump in 15 years
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Switzerland’s national benchmark for mortgage costs has risen for the first time in its history.
On Friday, the housing office announced that it was maintaining the benchmark interest rate at 1.5%. This rate, which was introduced in 2008, fell steadily before reaching its lowest level of 1.25%. The rate was raised for the first time last June, to 1.5%.
Mr Tschirren points out that the rise in the interest rate has been compounded by the decline in construction activity despite high demand, and by rising prices for energy and building materials.
In May, the Swiss government organised a round table to tackle the housing shortage. A first draft of an action plan is now being finalised, according to Tschirren, who is calling on politicians to show “courage”.
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