by Rents have risen significantly in Switzerland, something potentially affecting the 61% of the population living in rented accommodation. A survey by Deloitte places rent control at the bottom of a list of solutions. Photo by ILOVESwitzerland on Pexels.comThe survey, which questioned 1,900 people across Switzerland, found rent controls to be the least preferred solution to dealing with rising rents – only 4% of those with an opinion chose this option. Cities such as Berlin have introduced rent controls. However, controls tend to be counterproductive, explains Deloitte. Capping rents reduces the incentive to build, which is a key way to temper rising rents. The most popular solution among those surveyed by Deloitte was the construction of social housing, something favoured by 46%.
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Rents have risen significantly in Switzerland, something potentially affecting the 61% of the population living in rented accommodation. A survey by Deloitte places rent control at the bottom of a list of solutions.
The survey, which questioned 1,900 people across Switzerland, found rent controls to be the least preferred solution to dealing with rising rents – only 4% of those with an opinion chose this option. Cities such as Berlin have introduced rent controls. However, controls tend to be counterproductive, explains Deloitte. Capping rents reduces the incentive to build, which is a key way to temper rising rents.
The most popular solution among those surveyed by Deloitte was the construction of social housing, something favoured by 46%. Next was increasing housing density (42%), followed by more construction of residential properties (38%), abolishing the rental rate mechanism (31%) – a system that allows landlords to increase rent when mortgage interest rates rise, reducing immigration (24%) and reducing construction restrictions (19%). Rental caps were only supported by 4% of those questioned with an opinion on the matter.
According to Deloitte, the unpopularity of rent controls bodes well and raises the hope that more effective solutions to the growing shortage of housing can be found in Switzerland.
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Deloitte survey (in English)
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