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The center-right OVP and Greens have decided to provide a EUR 250M housing aid to help local households cope with inflation. Previously, there was a debate about a rental brake, however, the federal coalition settled with a one-off payment. The agreement came right before the increase of benchmark rents, which are government-regulated rentals in older buildings.
The housing allowance for qualifying households stands at EUR 200 on average. According to the Social Minister Johannes Rauch, approximately 1 million lower-income households will be able to take advantage of the new scheme. The income limits are established by the federal states, which also pay out subsidies.
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As stated by ÖVP club leader Wöginger, the newly announced initiative is more efficient than the rent brake, whilst the Executive Secretary Ingrid Reischl of the Austrian Federation of Trade Unions (ÖGB) said that a full rent freeze is required.
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As well as all that, there is a small relaxation of lending rules, which will come into effect from April 1st. Now, up to a value of 80% of the existing property, for a period of 2 years, is taken into account when it comes to interim financing.
Another change is that a so-called marginal income limit of EUR 50,000, which is applicable to spouses and registered partners has been increased to EUR 100,000.
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