The government has rejected proposals to limit higher rents on the housing market despite calls for affordable accommodation and complaints about a shortage of apartments as a result of increased immigration.
Economics Minister Johann Schneider-Ammann said no major state intervention was necessary to regulate market forces.
He said the vast majority of the population lived in good and affordable accommodation and spent about 20 per cent of their gross income on housing. He said the growing demand for more spacious apartments and houses was a result of Switzerland’s prosperity.
“Only certain parts of the country suffer from a shortage of accommodation, including regions around Zurich, Lake Geneva, Basel and in central Switzerland,” he told a news conference on Wednesday.
He dismissed allegations that the growing number of immigrants from European Union member countries was the main factor for the great demand for housing.
“It is wrong to change our policy on housing because of pressure ahead of nationwide votes,” he said.
Notably rightwing political parties have blamed the increased number of immigrants for the shortage of affordable housing.
Over the next few years Swiss voters have the final say on two separate proposals to cap the number of immigrants.
Measures
However, the cabinet decided to boost a programme for property and building corporations to acquire land and promised to examine ways to help promote the renovation of old housing.
Schneider-Ammann called on the cantons and local authorities to take appropriate measures to alleviate a housing shortage.
Three weeks ago, Justice Minister Simonetta Sommaruga announced the government was limiting temporarily immigration for EU citizens with a five-year residence permit. But the cabinet stopped short of capping short-term permits.
She added the cabinet would take measures to address housing problems.
Criticism
The latest decision has prompted outrage among the political left and the right.
The Social Democrats accused the government of ignoring the needs of the population, while the Greens said they were considering the launch of an initiative to protect tenants’ rights and combat property speculation.
About two thirds of the population in Switzerland live in rented accommodation.
The rightwing Swiss People’s Party for its part said Wednesday’s cabinet decision would help attract “even more foreigners”.
The centre-right Radical Party, considered close to the business community, as well as the Association of Swiss Cities, welcomed the cabinet decision.
Most Read Swiss Abroad
More
Swiss politician resigns after firing shots at Jesus picture
What can be done to protect biodiversity in your country?
Swiss voters are set to decide on a people’s initiative calling for better protection of ecosystems in the country. Have your say on the September 22 vote.
This content was published on
Hollywood star Pamela Anderson will be honoured at the Zurich Film Festival for her career and role in the film The Last Showgirl.
Switzerland to host Ukraine mine action conference in October
This content was published on
Together with Ukraine, Switzerland is organising the Ukraine Mine Action Conference (UMAC2024) in Lausanne on October 17 and 18.
Switzerland revises pension expenditure downwards by billions
This content was published on
The Swiss government has corrected downwards the projected expenditure on old-age and survivor insurance in 2033 by CHF2.5 billion ($2.66 billion).
Excess mortality rate post-Covid could persist until 2033
This content was published on
According to a report by reinsurer Swiss Re, many countries are still experiencing excess mortality following the Covid-19 pandemic.
Swiss Army ends clean-up operation in storm-hit Maggia Valley
This content was published on
The Swiss Armed Forces completed 76 flight hours during the clean-up operation following the storm in the Maggia Valley in Ticino at the end of June.
Swiss cruise ship stranded on Danube River after heavy rains
This content was published on
Passengers on a Swiss river-cruise ship stranded on the Danube following heavy rainfall are still unable to disembark in Vienna due to flooding.
Golden eagles get better at flying over time, say Swiss researchers
This content was published on
Golden eagles perfect their flight as they age and learn to make better use of air currents, says a new study co-produced by Swiss researchers.
This content was published on
Public libraries in Switzerland recorded 46.3 million admissions last year, 7.4 million more than in 2022, says the Federal Statistical Office.
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.
Read more
More
Swiss market on track for housing bubble
This content was published on
The UBS Real Estate Bubble Index indicates the risk of an overheating housing market on a multiple-point scale, with anything over two points indicating a bubble. UBS also announced Monday that in 2012, Switzerland’s property market reached a reading above one on the scale for the first time since 1991 with a score of 1.02…
This content was published on
According to the Swiss National Bank, total mortgage credit reached a new high of SFr614,244 billion ($668,819 billion) last year, which represents 103.6 per cent of Switzerland’s Gross Domestic Product (GDP). It’s almost a world record. Only the Netherlands has a higher rate, at 107.1 per cent. Among the countries with significant mortgage debt are…
This content was published on
The cabinet on Wednesday extended immigration quotas, introduced against eight mainly eastern European states a year ago, for another 12 months. It also wants to apply the same measures against the so-called EU-17 states, including Germany, France, Italy, Spain and Britain. As a result of Wednesday’s decision, the number of type B permits issued to…
You can find an overview of ongoing debates with our journalists here . Please join us!
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.