Reference interest rate remains unchanged
The reference interest rate remains unchanged at 1.75 percent in June, as announced by the Federal Housing Office. Rent adjustments based on this rate are currently not possible. The next review will take place in September.
The reference interest rate will remain unchanged at 1.75 per cent in June, the Federal Office for Housing announced ina press release. The interest rate relevant to tenancy law for the whole of Switzerland has been at this level since the beginning of December 2023. This means that no new claims for rent reductions or increases can currently be made on the basis of the reference interest rate.
The reference interest rate, which is graduated in quarters of a per cent, is calculated using the volume-weighted average interest rate for domestic mortgage receivables. As at the reporting date of 31 March, it stood at 1.72%, the same level as in the previous quarter. The reference interest rate, which is commercially rounded to 1.75 per cent, is only adjusted if the average interest rate falls below 1.63 per cent or rises above 1.87 per cent. The next announcement of the reference interest rate will be made on 2 September.
Rents based on a reference interest rate of 2.0 per cent or higher are currently still entitled to a reduction. Conversely, landlords are entitled to an increase if the rent is based on a reference interest rate of 1.5 per cent or lower. This does not apply to rental agreements with indexed or graduated rents, rents for subsidised flats and turnover rents for commercial premises.