The government in Austria wants to take action against inflation. The rent cap is just one of the planned measures.
In Austria, a price cap will be introduced for the majority of rents over the next three years. This was announced by the conservative ÖVP and Greens government on Wednesday in Vienna. The increases would be limited to five percent per year, said Chancellor Karl Nehammer (ÖVP). 75 percent of all tenancies should benefit from this, said Vice Chancellor Werner Kogler (Greens). A solution beyond the period is being worked on.
According to the government, without government intervention there would have been a risk of rent increases of 15 percent in some areas of the real estate market in 2024, Nehammer continued.
The move is part of a larger package to fight inflation. The pressure on the energy companies should also be increased to pass on the fallen gas and oil prices to their customers. The skimming of excess profits from energy companies will be tightened, said Nehammer. In addition, many fees are to be frozen for the time being. The prices for the motorway vignette and the climate ticket, which is intended to make rail travel more attractive, should not be increased. “We will continue to ensure that we relieve people directly, that we keep life affordable,” said Nehammer.
Overall, the relief volume for citizens from 2024 to 2026 will add up to 40 billion euros, thanks to direct aid and tax breaks such as the abolition of cold progression.
Source: Stern
