Swiss government proposes measures to curb rising rents

The proposed measures by the Swiss federal government aim to reduce rents and enhance transparency in the rental market without unduly interfering in contractual relationships or hindering housing market investments. KEYSTONE/© KEYSTONE / CHRISTIAN BEUTLER

The Swiss Federal Council aims to curb rising rents with short-term measures. On Wednesday, it proposed a four-point package of ordinances for consultation.

Under these proposals, landlords won’t be able to pass on general cost increases to tenants indiscriminately. They’ll need to provide evidence of the actual additional costs incurred. This move is expected to reduce claims for increases, offering some relief to tenants. It also aligns with the current case law of the Federal Supreme Court, which deems flat rates inadmissible.

Increased transparency

Moreover, the Council plans to enhance transparency by updating the initial rent notification form with the latest reference interest rate and inflation figures. This will help tenants better understand rent levels and contest them when necessary.

+‘Myth’ of spiking Swiss rents comes under scrutiny

In contesting rent hikes, tenants can now present absolute cost criteria like translated income or local customs. Corresponding forms will be labelled accordingly, increasing transparency in current tenancies.

To offset inflation in equity capital, rent increases will be capped at 28%, rather than 40% of the national consumer price index increase. While providing some relief to tenants, this adjustment won’t have a significant impact. For instance, for a CHF2,000 ($2,213) rent with a 2% inflation rate, relief would amount to CHF4.80 per month or CHF57.60 annually.

Parliament also approved changes to the notification process for staggered rent increases. Instead of an official form, written notification will suffice.

+Rent increases of 15% possible for Swiss tenants by 2026

15% higher rents

The consultation on these proposals will run until July 11. The Federal Council anticipates potential rent hikes of up to 15% by 2026, depending on interest rates and inflation. These measures aim to reduce rents and enhance transparency in the rental market without unduly interfering in contractual relationships or hindering housing market investments.

Adapted from German by DeepL/amva

Sign up to get daily news from Switzerland, directly in your inbox.

How we work

This news story has been written and carefully fact-checked by an external editorial team. At SWI swissinfo.ch we select the most relevant news for an international audience and use automatic translation tools such as DeepL to translate it into English. Providing you with automatically translated news gives us the time to write more in-depth articles.

If you want to know more about how we work, have a look here, and if you have feedback on this news story please write to [e-mail].