The SPÖ or the FPÖ would have to agree to the law on the rent cap. Both refuse. The government is also reviewing the calculation of the inflation adjustment. Read all the details about it here.
The rent brake will not be a walkthrough for the coalition. The new law must be elevated to constitutional status – meaning it would need a two-thirds majority in parliament.
The changes affect a large number of existing contracts. By interpreting it as a constitutional provision, the aim is to ensure that the regulation is legally safeguarded.
The FPÖ does not want to vote. The reaction of SPÖ club president Philip Kucher was also clearly negative. The SPÖ will not agree to the law, as it will prevent rents from being reduced or rent increases suspended by a simple majority in the future.
The government will no longer reap many laurels for the rent brake. Possibly in the future. The detailed bill contains a number of points that will change the calculation of the valorisation in the future and should thus prevent sky-high rents.
How often will the rent be indexed in the future?
For reference rents in old buildings and subsidized rental and cooperative apartments, the inflation adjustment will take place annually from 2025 – instead of the previous cumulative valorisation every two years. For old properties and category rents, only one increase per year is allowed – instead of several times per year.
How long is the rental limit valid?
The rent ceiling of five percent will apply for the next three years.
How is the valorisation calculated from 2027?
From this point on, a new mode will come into effect: the average inflation over the past three years will then be decisive for the calculation. In addition, a limit is provided for cases in which the average inflation over the past three years exceeds five percent. In these cases, when increasing the amounts, only half of the part of average inflation that exceeds five percent may be taken into account.
How long will energy costs be frozen?
Water, canal, etc. are frozen for a year. This has an inflation-dampening effect of about one percent.
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.
