Rents likely to rise this year

Wednesday, 1 March 2023 06:30

Rents are likely to increase this year – and there’s no sign the price increases will stop.

Rising interest rates and inflation will prove to be a double blow to tenants.

Today the Federal Housing Office will publish a figure called the ‘reference interest rate’ which allows property owners to set rents.

Since it was introduced in 2008, the rate has only fallen. It started at 3.5% - and now is 1.25%.

Experts agree that the rate will rise this year – and it gives owners the right to raise rents.

In addition, owners can raise rents to counter the higher cost of living.

The bank UBS is predicting a rent rise of 20% by 2025 – and that’s not including inflationary increases.

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