Rent Control Decided - Babler Sees "Good Day for Tenants"

The National Council passed the government's rent price cap with the votes of the coalition and the Greens. It was a "good day for tenants," said Vice Chancellor Andreas Babler (SPÖ), responsible for housing, on Thursday in the plenary session. He expects an end to inflation-induced "rent price explosions." The Greens, on the other hand, believe that the reform will only lead to manageable braking effects, while the FPÖ identified it as a "marketing project."

If inflation exceeds three percent in a year, the value above that can only be used half for the valorization of rents - also in the private sector. In old buildings, municipal, and cooperative apartments, the increase will be limited to one percent in 2026 and two percent in 2027. Additionally, the minimum lease term for apartments will be increased from three to five years. Reference values, category rents, and other amounts in the Tenancy Law are to be valorized on April 1st each year. Claims for repayment of rent due to ineffective clauses will be restricted.

ÖVP: "After the Reform is Before the Reform"

Babler emphasized that they will put an end to the "rent price explosions" of the past by ensuring that inflation in times of high inflation is no longer passed on one-to-one to rents. Rents, on the other hand, would act as a dampening factor on inflation in the future, the SPÖ leader was convinced that the government has initiated a "paradigm shift." He emphasized the first-time intervention in the private sector, as rents there have increased by 80 percent since 2010.

ÖVP housing spokesperson Norbert Sieber announced further steps: "After the reform is before the reform," he said, indicating that they want to discuss improvement proposals promptly. NEOS housing spokesperson Janos Juvan emphasized that an ecological renovation offensive for existing buildings should follow in any case. This is intended to prevent a shortage of supply.

No Support from FPÖ - Green Criticism

Only the FPÖ voted against the law. Construction spokesperson Michael Oberlechner identified "not a tenant protection package, but a marketing project." Rents would continue to rise, he said - the first three percent of inflation would be passed on to tenants, with the exceeding part still being shared equally. The Greens did agree, but not without criticism. The expansion of the rent price brake is positive, but the measure has a limited braking effect, said housing spokesperson Nina Tomaselli.

New Regulation for Value Adjustment Clauses Adopted

Without the approval of the opposition, a new regulation for value adjustment clauses was also adopted later. According to a decision by the Supreme Court (OGH), one of the regulations under the Consumer Protection Act regarding inadmissible contract components is no longer relevant for rental agreements or other long-term obligations. This jurisprudence was enshrined in law. The amendment aims to prevent the complete elimination of an inadmissible value adjustment clause in the rental contract from causing the rent to retroactively drop to the amount at the time of contract conclusion and no longer be valorized. Here, claims for many years would have been threatened, said Johanna Jachs (ÖVP). The new regulation ensures legal certainty for all parties involved.

Already in the debate on the rent price brake, the Greens and FPÖ had spoken against it. Tomaselli criticized the removal of claims - it was a "kowtow to the real estate industry." Oberlechner also criticized that claims due to inadmissible value adjustment clauses in rental contracts are now only possible for five years. Tenants had no claims due to inadmissible clauses before, but they had to sue, countered Elke Hanel-Torsch (SPÖ).

(APA/Red)

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