Rent Price Cap Already from Early 2026: Babler Heats Up Tempers
The announcement by SPÖ leader Andreas Babler that a rent cap in privately financed housing is to come into effect at the beginning of 2026 was agreed upon with Federal Chancellor Christian Stocker (ÖVP). This was confirmed by a Stocker spokesperson on Wednesday to the APA. The initiative by Vice Chancellor Babler in the ORF "Summer Talk" on Monday caused confusion after ÖVP construction spokesperson Norbert Sieber told the "Standard" that this "has not yet been coordinated."
Not Much New from Vice Chancellor Babler
Actually, Babler did not announce much new regarding rents. As agreed in the government program, the increase in rents in the regulated sector should be a maximum of one percent (2026) and two percent (2027) in the coming years. Additionally, a new index for housing rental was agreed upon in the coalition agreement: From an inflation rate of three percent, landlords should only be able to pass on half of the additional inflation to tenants. The government program targets 2028 for this.
Instead of 2028: New Index "As Soon As Possible"
For the non-regulated sector, however, the index should now come "as soon as possible," according to the chancellery to the APA. The spokesperson did not want to commit to a start at the beginning of 2026, as this is still subject to discussions. However, commercial rents should not be affected by the new index. This is also not provided for in the government program. Sieber had already denied this to the "Standard."
NEOS Initially Remain Reserved
The NEOS, as the third coalition partner, initially showed restraint towards the Babler announcement on Tuesday in several media outlets. As reported by the Ö1 midday journal on Wednesday, it is now also said from NEOS circles that a price cap will likely come in 2026.
Kickl Criticizes "Brake" Only From Three Percent Inflation
Criticism of the plan comes from the Freedom Party, although the FPÖ club and the Freedom Economy (FW) have opposing views on the subject. FPÖ chairman Herbert Kickl speaks in a statement of a "rent price brake" and criticizes that the "first three percent of inflation" in the model "fully at the expense of tenants." FPÖ housing spokesman Michael Oberlechner therefore calls for an extension of the maximum limits applicable to old buildings to all apartments "that do not meet a contemporary standard." Rent adjustments in these apartments should not exceed two percent.
FPÖ and Freedom Economy Disagree
The Freedom Economy (FW) sees it differently. "Capping rents at half of inflation takes away any economic basis from landlords and investors," says FW housing spokesman René Schachner in a statement. He calls for "a clear no to state interventions in the privately financed housing market." The Austrian House and Landowners Association (ÖHGB) sees it similarly, viewing it as an "attack on property" that is "characterized by economic ignorance."
SPÖ Criticizes "Real Estate Lobby," Emphasizes Social Importance
SPÖ federal manager Klaus Seltenheim then took the FW statement as an opportunity to accuse it of only having "the profits of the real estate lobby and housing speculators" in mind. According to the union-affiliated Momentum Institute, an extension of a rent cap to the unregulated sector would benefit 430,000 households.
(APA/Red)
This article has been automatically translated, read the original article here.