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No Relief for Swiss Renters as Mortgage Rates Barely Move

Every three months the rate of interest used to set Swiss rents is reviewed. If it goes down some renters have the right to request a decrease in rent. This time it remained at 1.50%.

Apartments Zurich

©-Sergei-Razvodovskij-_-Dreamstime.com_ - Click to enlarge

The last time it dropped was 2 June 2017 when it fell to 1.5%, its lowest level since 2008.

The rate is based on the average Swiss mortgage rate over three months. This rate is then rounded to the nearest 0.25%. On 30 September 2018 that rate was 1.47%, which rounds to 1.5%. The underlying mortgage rate has declined every quarter since 30 September 2008 when it was 3.45%. On 30 June 2018 it was 1.49%.

In general if your rental contract links your rent to mortgage interest rates then you can demand a decrease in rent when this reference rate declines. The Swiss Association of Tenants, Romande branch, provides useful information on when and how to go about making a demand. Their website (in French) can be found at

Swiss rent rises have outstripped inflation. According to the Federal Statistical Office, rents have risen by 17.6% since 2005, representing an average annual rise of 1.25%. Over the same period, Swiss inflation has been 3.5%, an average of around 0.27% per annum.

Current and historical reference interest rates are presented on the Office fédéral du logement (OFL) website.

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About Le News
Le News
The newspaper Le News is a free, quality, local English language newspaper launched on 31 October 2013. Le News fills a gap in local Swiss media for the numerous English-speakers living and visiting Switzerland. In late January 2015 we decided to put our print medium on hold and focus on our digital media presence.
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