Record rents: Category rents expected to rise three times this year – All of this year’s rent increases would burden tenants with around 400 million euros
Vienna (OTS) – After the guideline and category rent increases in April, category rents rose again in June. A third category rent increase is likely at the end of the year due to high inflation. The AK has calculated: All rent increases would load the Mieter:innen altogether with approximately 400 million euro. AK housing expert Thomas Ritt: “The tenants are relentlessly asked to pay. With the landlord:inside however the incomes bubble. That does not fit together. Housing must be affordable.”
Inflation is going through the roof and making life increasingly difficult to afford. The AK regularly surveys how prices develop in the areas of energy, fuel, food and housing – and the figures are alarming!
Last year, the government suspended the adjustment of the guideline and category rents due to the insistence of AK and Mietervereinigung, in order to relieve tenants in the Corona pandemic. This year, in April, these rents were increased substantially. Across Austria, this means that half a million households will have to pay around 140 million euros more. For a household the standard rents for the one dwelling with the average size rose around 300 euro in the year, the category rents around 150 euro per year.
Whenever inflation exceeds the five percent threshold, there is an increase in category rents. The five percent threshold is also contractually very widespread for free rents. Most recently, there was inflation of more than five percent within half a year. Due to the high inflation, the second category rent increase was thus already triggered in February – in June it was a reality. “Affected are with the free and category rents country widely approximately 580,000 households – in sum it concerns rent increases of more than 170 million euro. For 150,000 of these households, it is the second five percent rent increase within two months,” says Ritt. On average, the second category rent increase costs a household in an average-sized apartment just over 150 euros per year, while the inflation in free rents in the private segment costs around 300 euros per year.
“As things stand, the five-percent rent club is likely to hit a second time for free rents and a third time for category rents toward the end of the year due to high inflation,” Ritt fears. “All increases in 2022 would burden tenants:inside with a total of 400 million euros.”
“Housing is becoming a luxury,” says Ritt. Especially younger people and families and those who don’t earn as much can hardly afford their own four walls anymore.” The AK is also calling for rent-curbing measures:
+ one-time rent increase per year plus rent cap and rollback of rent increases: Rents should not rise more often than once a year; after all, wages are also negotiated only once a year. In addition, increases are to be limited to a maximum of two percent. The regulation is to be dropped only with a – long overdue – rent law reform. The rent increases that have already been implemented this year are to be reversed.
+ Away with time limits: In the future, real estate companies, insurance companies and other large apartment owners should only be allowed to rent out apartments for an unlimited period of time. Private individuals, on the other hand, are to be allowed to rent out an apartment for a limited period.
Chamber of Labor Vienna
Doris Strecker
(+43-1) 501 65-12677, mobile: (+43) 664 845 41 52
[email protected]
http://wien.arbeiterkammer.at
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