The Swiss Tenants Association will hold a referendum against “exorbitant rents and profitability.” This decision is linked to the recent increase in the base interest rate, which is believed to have led to excessive increases in rents. 

“The explosion of rents and fees, as well as the massive pressure on vacant housing in some regions, is very worrying. We are on the verge of a social crisis,” said association president Carlo Sommaruga.

The fact is that on June 1, 2023, the index used to calculate the reduction and increase in rents in Switzerland rose by 0.25 percentage points. Thanks to this, landlords were able to increase rents by up to 3 percent for about 50 percent of tenants in the country, including those with whom leases have already been negotiated.

Although the exact content of the referendum has not yet been disclosed, the association said its goal would be to “ensure regular rent control in the future.” The initiative would likely seek to ensure that market prices are in line with maximum rental costs. The association drew attention to this problem in September 2022, when experts said that tenants pay 14 billion francs a year more than they should.