The government has now reached an agreement in the dispute about the rent brake. The negotiations eventually failed, a rent subsidy should come instead. 250 million euros will be set aside for this.
The Greens accepted their coalition partner’s compromise proposal. As reported, this week the ÖVP proposed a new bonus and tax breaks for property buyers. There was not much time left anyway: the government had to come to an agreement with the finance committee on Thursday to be able to absorb the upcoming rent increases as of April 1 (new contracts) and May 1 (existing contracts).
ÖVP wanted improvements for landlords and buyers
The benchmark rents then rise by 8.6 percent. The fact that there is no rental brake now is due to the resistance of the ÖVP. Originally, the coalition had negotiated to spread the higher rents over several years. However, the ÖVP also wanted improvements for the landlords, who would therefore have less income. For example, she argued for more attractive tax depreciation options for climate-friendly thermal renovations. In addition, buyers and home builders should be relieved by exempting the first 500,000 euros from transfer tax.
The Greens had gone too far with these proposals. They proposed raising the transfer tax rate from 3.5 to 5 percent for purchases worth a million euros or more. That should relieve the burden on the communities. The ÖVP brought its now accepted proposal into play on Monday. EUR 250 million is intended as housing support, of which EUR 25 million will be increased for the housing umbrella against evictions.
The Council of Ministers will appear before the press at noon. ÖVP club boss August Wöginger and Social Affairs Minister Johannes Rauch (Greens) will present the details of the new model.
Source: Krone
I am Ida Scott, a journalist and content author with a passion for uncovering the truth. I have been writing professionally for Today Times Live since 2020 and specialize in political news. My career began when I was just 17; I had already developed a knack for research and an eye for detail which made me stand out from my peers.
