Living in Austria: New program brings rather small steps!

Living in Austria: New program brings rather small steps!

In the new government program of the coalition of the ÖVP, SPÖ and NEOS, the focus is on “affordable living”. This is the first time in years that the SPÖ under Andreas Babler receives its own department for living questions. Experts describe the measures as a step in the right direction, but fear that no fundamental changes in the housing market can be expected. Michael Klien, an expert from the WIFO, emphasizes: "This government program will not be a bomb." This was also confirmed by the small newspaper that would not be expected that large effects are not to be expected in the living area.

Details on the rental cover and its implementation

The program provides for a step -by -step covering of rents in the regulated market, whereby from 2028 rent increases are to be limited to a maximum of three percent. If inflation increases over three percent, only half may be increased. However, it is critically noted that these regulations have little influence, especially for temporary rental contracts. Klien pointed out that the increases often only become tangible for new contracts, which makes direct regulation difficult. In addition, the rental cover does not apply to new buildings, which could endanger the willingness to invest in the area of ​​non-profit residential construction, as from reports from the 5min.at emerges.

The government also plans to raise the minimum limitation of rental contracts to five years. However, experts agree that this will hardly change the already strong tendency to award temporary contracts. Critics in the residential building industry warn of a decline in renovations due to the declining rental income, which could lead to a decline in building stock. However, Klien sees opportunities for an investment boom, since taking into account the energetic quality of the buildings in rent formation. Despite the planned measures, the need for comprehensive tenancy law reform is signaled, which has been missed in the past two decades.