The proposal from Bern has been on the table since September 25, 2026, and challenges two cornerstones of current rental law. In the future, a statistical comparative rent is to play a central role in assessing whether rents are excessive; furthermore, rents are to be adjusted for inflation rather than the reference interest rate. The Department of Economic Affairs is set to launch a public consultation on this in the first half of 2027 so that the Federal Council can submit the message to Parliament by the end of 2027.
This shifts the focus away from the previous cost-based approach. According to the Federal Council, tenants and landlords should be able to determine more quickly and easily whether a rent is excessive. The federal government expressly does not intend to introduce automatic and regular official rent controls, as called for by the initiative. It justifies its rejection of the initiative, among other things, by citing the high cost of enforcement and risks to investment in housing construction.
Market-Based Approach Instead of a Control Model
The indirect counterproposal is controversial because it does more than simply adjust individual parameters. The statistical comparative rent would be based more closely on the local market rent level when tenants move. At the same time, the planned inflation indexation would, at least in part, replace the current strong linkage to the mortgage reference rate. For owners, developers, and institutional investors, this would signal greater predictability. For tenants, however, concerns are growing that existing rent levels will be more easily adjusted upward.
Strong opposition from the left
The Tenants’ Association and representatives of the SP view the proposal as a first step toward market-based rents. The association warns of an escalation of the rent crisis and is mobilizing with an appeal against the Federal Council’s plans. The bill is also politically charged because the Rent Initiative was not formally approved until August 13, 2026. At that time, the Federal Chancellery confirmed 108,437 valid signatures.
Decision to Be Made Later
Whether the counterproposal will actually result in a fundamental systemic change remains to be seen. The general direction has been decided, but the legal details have not yet been finalized. This is precisely where the crucial issue lies for the real estate industry. Only once the detailed rules are in place will it become clear how heavily comparative rents will be weighted, how the inflation adjustment will work in practice, and whether the promised protection against abusive rents will ultimately prove to be more robust or more porous.
