High Swiss rent – little support for rent controls
High Swiss rent – little support for rent controls
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
residentia
l 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.
More on this: Deloitte survey (in English)
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