Image: VOLKER Weihbold
The cover “takes away the uncertainty” from the tenants, said Felbermayr. Especially for residents of non-profit apartments “that is a significant relief”. Likewise, the government should think about measures for people who are now left behind.
Felbermayr says that the fact that not all tenants benefit from the cap is a certain injustice. However, one must bear in mind that legal difficulties could arise in the regulation of free rents for new buildings. The economist referred to Germany, where a far-reaching rent cap had already been declared invalid.
Link rents to consumer prices?
In order to tackle the problem of high rents in the longer term, as the government also put forward on Wednesday, Felbermayr proposes reconsidering the linking of rents to the consumer price index (CPI). For him, an orientation towards the development of total net rents or towards indicators that influence the sector would be obvious. “If gas is getting more expensive, why should rents go up?” he asked. There is no causal connection there. “But if construction prices rise or the land becomes more expensive, then there is already a causal connection.”
“Will be inflation-dampening”
The Wifo boss expects that the announced measures will reduce inflation. “Of course, the rental price brake will have an inflation-dampening effect. But these are not percentage points. We’re talking about tenths of percentage points. If the fee freeze is fully rolled out (…), then we’re talking about almost a whole percentage point of inflation. That would be noticeable.” There are also second-round effects. For example, an influence on collective bargaining, which is traditionally based on the development of inflation, is conceivable.
Badelt sees “a real brake”
Fiscal Council President Christoph Badelt took a similar line. He also sees the tenants relieved. “Now it’s a brake, a real brake, so that there will be no extreme rent increases next year,” he said in the Ö1 “Mittagsjournal”. Like the Wifo boss, he expects that the package will reduce inflation.
With earlier action by the government – a rental price brake was discussed some time ago – this effect could have been achieved this year, Badelt said on ORF radio. Felbermayr sees it similarly: “It’s better to do it now than not to do it at all. But if you had done what’s happening now in the spring, we would probably have slightly lower inflation now and maybe a better starting position for collective bargaining. “
Source: Nachrichten
