Swiss Federal Council rejects rent price initiative

The Swiss Federal Council has rejected the federal rent price initiative and proposed an indirect counter-proposal to the parliament. The original initiative, supported by over 140,000 signatories including the Social Democratic Party and various unions, seeks automatic and regular rent reviews to prevent abusive pricing. Proponents, such as the Tenants' Association, argue that Swiss renters pay an average of 360 Swiss francs too much per month, resulting in an annual transfer of approximately 10 billion francs from tenants to landlords.

In contrast, the Federal Council's counter-proposal suggests using a statistical comparative rent as a benchmark for permissible rates. This system would use a representative sample of currently paid rents to guide landlords during tenant changes, while allowing adjustments for inflation during ongoing tenancies.

The proposal has met resistance from both sides. The Swiss Homeowners Association (HEV) criticizes the plan as overly bureaucratic and difficult to implement due to the lack of comparability between different rental properties. Meanwhile, the Tenants' Association fears the measure will fail to prevent rising housing costs. The Federal Council expressed concerns that the original initiative's strict controls could discourage investment in new housing construction.