FPÖ Proposes 2% Cap on Rent Increases and Calls for Changes to Housing Allocation
The Freedom Party of Austria (FPÖ) has presented a new set of proposals aimed at addressing housing affordability, sharply criticizing the current approach of the Austrian federal government and Vienna's city administration. The FPÖ outlined measures to limit rent increases and adjust the allocation criteria for public housing, positioning these steps as essential to ensure more accessible living arrangements for residents.
During a recent press conference, FPÖ leadership argued that existing government policies, implemented by the coalition of the Austrian People's Party (ÖVP), Social Democratic Party (SPÖ), and NEOS, as well as Vienna's red-pink city coalition, have not gone far enough to address rising housing costs. The FPÖ's plan centers on capping annual rent increases at a maximum of two percent for most rental agreements. This measure is intended to create greater financial predictability for tenants by preventing sudden or excessive rent hikes.
The proposal includes an exception for small-scale landlords, defined as those who rent out no more than five to seven residential units. According to FPÖ representatives, this exemption is designed to ensure that private individuals and small property owners are not disproportionately affected by the new regulations, as these groups often rely on rental income as a supplementary source of earnings.
Another key aspect of the FPÖ's housing policy is the elimination of fixed-term rental contracts, advocating instead for the widespread adoption of open-ended agreements. The party argues that abolishing limited-duration leases would provide tenants with greater security and stability in the rental market. Furthermore, the FPÖ suggests changes to the way rental price regulations are applied, proposing that the eligibility for full rent control be determined by the condition and energy efficiency of a property rather than its construction year. Under this approach, only buildings meeting certain minimum energy standards--specifically those with a rating of at least energy class C--would be considered adequately renovated and therefore eligible for more flexible rent-setting. Property owners who undertake significant renovations would be able to apply for temporary exemptions from strict rent controls.
In terms of public housing, the FPÖ has called for a prioritization system that favors Austrian citizens and residents from other European Union member states when allocating municipal and cooperative apartments. The party's position is that non-EU nationals should only be granted access to these housing options if there is a demonstrable lack of demand among eligible residents, and then only on a limited-term basis. This proposed policy is intended to address perceived pressures on the housing market and ensure that public resources are primarily directed towards domestic and EU populations.
FPÖ officials also drew attention to the condition of social housing in Vienna, stating that many municipally managed properties are in need of renovation. They argue that despite rising rents in recent years, the maintenance and quality of these buildings has not kept pace. The party has proposed reducing rents in public housing to levels comparable with those found in fully financed, non-profit developments.
In response, the SPÖ has defended its record, pointing to a comprehensive package of government reforms designed to regulate the rental market. According to SPÖ housing policy representatives, legislative measures are already in place to extend the existing rent cap, with planned increases for regulated rents to be limited to one percent for 2026 and two percent for 2027. Additionally, the government intends to increase the minimum duration for new and renewed rental contracts from three to five years beginning in 2026. These steps are designed to offer tenants greater protection against rapid rent inflation and ensure more stable housing conditions.
The ongoing debate reflects broader concerns about housing affordability and quality in Austria, as policymakers and political parties continue to propose and adjust measures intended to stabilize the rental market and make housing more accessible for a broad section of the population.