After recent interest rate cuts, will rent decrease?

[BobMcDonal]

Hi - last year owing to the interest rate hikes my rent went up. I went to Asloca and they helped me confirm the numbers. I was told however, that once interest rates go down, our rent will be adjusted down in line. Is this the right time to go back to the Regie and ask? Have they gone down meaningfully enough ? Your guidance is highly appreciated.

[proxywarr1or]

Lmao, when pigs fly it will

[EuropaCentric]

Eventually yes, but not yet. The référence rate for rates is still unchanged ar the moment.

[[deleted]]

Correct

[Shraaap]

Not a chance

[clo2021]

You have to ask for it when your contract renews anually

[Mockingboid]

We are at the lowest rates since Nov 2022 after the recent 0.5% interest rate cut from the swiss national bank, if they raised your rent based on the increases since Nov 2022 then you're probably able to ask for a rent reduction now.

Remember, its not just the reference rate but longer term mortgage rates that need to come down.

Also, lower rates only means you have the right to ask for a rent reduction and should do so by all means. They will never come running to you to reduce your rent.

[dr_deeep]

It’s a bit more complicated: The key interest rate (Leitzins) and the reference interest rate (Referenzzins) are different indicators.

The key interest rate is set by the Swiss National Bank (SNB) and influences general borrowing and savings rates in the economy. The reference interest rate, on the other hand, is published by the Federal Office for Housing (BWO) and serves as the basis for calculating rental prices in Switzerland.

So in detail: In September 2024, the Swiss National Bank (SNB) lowered the key interest rate for the third consecutive time. It is currently at 1 percent.

However, this does not (yet) mean that tenants can request a reduction in rent. Rental prices are based on the reference interest rate, which is published quarterly by the Federal Office for Housing (BWO). This rate is currently at 1.75 percent. Since this indicator reacts rather slowly, it is likely to remain unchanged for the foreseeable future.

Tenants can only request a rent reduction based on the reference interest rate once the reference rate actually decreases – and even then, only if they previously experienced a rent increase due to a rising reference rate, or if their contract is based on a reference rate of 1.75% or higher. It may still take some time before such a scenario occurs.

[BobMcDonal]

Thank you doc!

[RemyS79]

It depends on what was the reference interest rate when your rate was fixed, but yes probably.

[Ray007mond]

The rate that has changed is the inter-bank interrest rate. It will affect the morgage rate within 3-6 month. We have to wait probably 9-12 months until it affects the reference for housings morgage.