Cap enforced

Government freezes old rents for one year

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26.02.2025 22:00

The SPÖ has apparently pushed through a rent cap in the coalition negotiations: This year, benchmark rents are not to increase at all, in 2026 and 2027 only to a limited extent. In addition, the minimum duration for fixed-term contracts is to be extended.

In the coalition negotiations, the SPÖ apparently pushed through the price cap for over 300,000 households, the majority of which are in the federal capital of Vienna. According to information from "Krone", rents in the regulated area (guideline value and category) are to be frozen this year. In 2026, the increase will be limited to one percent, in 2027 they are to rise by two percent.

Statutory rents will only rise to a limited extent
This concerns old apartments built before 1945. They are subject to a statutory rent level (rent), which is also often the case for council apartments. Unlike with rents on the free market, the government can intervene in prices relatively easily here - which is apparently now happening.

The SPÖ sees price caps as a key to affordable housing.
The SPÖ sees price caps as a key to affordable housing.(Bild: APA/EVA MANHART)

In contrast, it is difficult to set a fixed cap for rents on the open market, although these have risen particularly sharply in recent years. Many tenants therefore tend to look through their fingers when it comes to this measure. Originally, the SPÖ wanted to freeze rents completely for six years, but the ÖVP and NEOS did not want to go along with this.

Incidentally, many apartments are already subject to a rent freeze introduced by the old black-green government, which curbs rent increases. The new measure will tighten this and set a new increase path for many apartments until 2027.

Minimum duration for fixed-term contracts to be extended
The SPÖ also prevailed when it came to fixed-term contracts: Currently, according to the Tenancy Act, apartments may be let for a minimum of three years on a fixed-term basis; the duration is to be extended.

As reported, a new value index for rental agreements is also planned due to unlawful index clauses. This is to be based on the consumer price index (CPI). If inflation exceeds three percent, increases will then be curbed and only half of the increase will be payable by tenants.

This article has been automatically translated,
read the original article here.

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