The Chamber of Labor does not go far enough with the planned limitation of housing rent. Austria’s top economists, on the other hand, assess the new anti-inflation program positively.
The opinion of the economic experts is unanimous: it is good that the rent brake will be introduced in 2024, but why only now? The breakthrough could have been achieved as early as spring 2023. “The ceiling will contribute to tempering inflation,” says Wifo boss Gabriel Felbermayr positively. The “Krone” asked experts for an opinion: what does the new anti-price program entail?
Rental price limit: The five percent cap for three years is fastest for category renters, whose rates are always raised as soon as inflation rises above five percent since the last adjustment. That is 135,000 contracts with low prices per square meter of four to five euros.
With the 380,000 benchmark rents, an increase would only be possible again in 2025, free rental contracts are no longer included in the scheme. The government is still working on a legal solution here. The Chamber of Labor is therefore calling for the 5 percent rule to be applied “retroactively for 2022 and 2023,” explains AK expert Lukas Tockner. Wifo boss Gabriel Felbermayr finds this difficult to implement.
The SPÖ’s criticism that the upper limit will have no effect on tenants in 2024 due to declining inflation cannot be confirmed by top budget guard Christoph Badelt. ‘It’s a sham connection. The inflation adjustment refers to the values of the last twelve months, not the current value.”
Stop at water, sewage and waste charges: Badelt sees real relief here if the fees are frozen. “The operating costs will feel it, and it will dampen inflation.”
Increase excess profit tax: The measure will not cause inflation to ‘collapse’, says expert Badelt.
Vignette and environmental card. There is no question of an increase here; a relief for commuters.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
