Though, politics is everywhere, and they want to cap the index rents as well. Make sense, because why can everyone raise prices, while salaries do not automatically rise. There is no balance.
In the Netherlands the average waiting time for rent-controlled social houses in popular places like Amsterdam and Utrecht now exceed 10 years.
If the rent increase has been determined by market conditions to be 10%, incumbents have their rent increased by 40% of that, so 4%. And it's not asymptotic. If the rent increase next year is 0%, the incumbents still pay just 104% of the basis rent.
Over time, incumbents have unbeatable rent and can't afford to move, and newcomers pay an extortionate amount, which is the present status quo. The Swiss also blame the newcomers for raising the rents, even though they are the victims.
Coming from the UK, i find the system here vastly more sensible, having been kicked out of multiple residencies in the UK because landlords felt like raising rents by outrageous amounts
> Your landlord must give you a clear explanation for raising your rent. Justifiable reasons could be an increase in the reference interest rate, inflation, increased maintenance costs or an investment that increases the value of the property e.g. the installation of additional kitchen appliances.
It is interesting that there is no hard cap mentioned. Inflation, interest rate and maintenance cost all skyrocketed last year, would a 5 percent rent increase be possible? Or could that be refuted?
For comparison, The Netherlands has set a max rent increase of 4.1 percent for 2023. In 2022 this was 2.3 percent.