Number of arbitrations due to rent increases remains high

Published: Tuesday, Dec 3rd 2024, 11:00

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In the first half of 2024, 25,350 new rental or lease arbitration proceedings were opened across Switzerland. According to the Federal Office for Housing (FHO), the number of new cases continues to be around 65% above the long-term average.

Compared to the already record-high figure in the second half of 2023, there was only a slight decrease of 0.76 percent or 194 cases, the BWO notes.

The number of completed cases in the first half of 2024 was 26,092, around 18% more than in the previous semester. According to the BWO, proceedings concerning rent increases accounted for by far the largest share, at more than a third. In 8,207, or 86.2% of these cases, the parties were able to reach an agreement before the conciliation authority.

Challenges due to rent increases already accounted for the highest proportion of completed proceedings in the previous semester, but at 36.5 percent in the first half of 2024, their share was even slightly higher than the most recent figure of 36.3 percent.

The extraordinarily high value in the current reporting period is also likely to be due to the increase in the mortgage reference interest rate as at June 2, 2023 and December 2, 2023, explained the BWO.

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