Babler: New Rental Rules Bring Massive Savings for Households

The rent caps decided this year bring significant relief in housing costs according to the Minister responsible for housing, Andreas Babler (SPÖ).

311 Million Euros in Tenant Savings Through Rent Caps

According to current calculations by the Austrian Tenants' Association (MVÖ), tenants will save a total of around 311 million euros in 2025 and 2026 due to the measures, as the SPÖ announced at the end of the year. With the new rental law package, prices of unregulated rents will be intervened for the first time next year.

In the spring, the National Council suspended this year's increases for regulated rental agreements. These include old buildings, municipal, and cooperative apartments. According to the MVÖ analysis, tenants saved a total of 103.7 million euros in 2025 due to this rent cap.

Unregulated Rental Agreements Affected for the First Time

Next year, the savings volume will increase to a total of 207.6 million euros. In January, the rent cap for the unregulated sector will also come into effect: If inflation between two years exceeds three percent, the part of inflation exceeding three percent may only be passed on to tenants by half.

For regulated rental agreements, the rent may only increase by a maximum of one percent in 2026. "An average tenant in an old building will save 318 euros next year," Babler explains according to the announcement.

House and Landowners' Association: Rent Cap Will Make Housing More Expensive

The House and Landowners' Association (ÖHGB) described the reported savings for tenants as "misleading." The rent cap deprives the housing market of "exactly the capital that is urgently needed for maintenance, renovation, and new construction," it says in a release. This would make housing more expensive in the long term. Drivers of housing costs are energy prices, continuously valorized fees, and operating costs, but not rents, says the ÖHGB.

(APA/Red)

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