Study sees need for adjustments to rent model
Published: Friday, Dec 20th 2024, 13:20
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According to a study commissioned by the Federal Council, the rent model no longer reflects the current reality on the Swiss housing market in several respects. The model and the rules for adjusting rents should therefore be revised.
The current rental model, which dates back to the 1980s, assumes that 70 percent of the rent covers capital costs and 30 percent other costs such as maintenance or administration costs. The capital costs are in turn divided into 40 percent equity and 60 percent borrowed capital.
According to the study carried out by real estate consultancy IAZI AG on behalf of the Federal Housing Office (BWO), the cost elements of rent have changed in recent decades. Today, the other costs and those for debt financing are lower than the shares of the model.
The Federal Council is expected to decide on the specific amendment to the ordinance and how to proceed with the rent model in spring 2025.
©Keystone/SDA
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