Is the government’s already lost game in the rental market/determining the rent ceiling operational?

According to Tejarat News, as the rental season is approaching, the issue of setting the rent ceiling has heated up again, but since the Ministries of Economic Affairs and Finance and Roads and Urban Development have already entered into decision-making sessions on this matter, it shows a difficult year ahead. and the government will repeat the already lost game every year.

This plan was approved for the first time in 2019 by the National Headquarters for Dealing with Corona, and according to it, in the conditions of Corona and to reduce the displacement of households, which contributed to the spread of the disease, landlords are required to renew housing rental contracts and also comply with the 25% ceiling of rent increase in They were in Tehran. In this sense, dispute resolution councils did not have the possibility to issue an eviction order for tenants.

This decree was extended again in 1400, but exceptions were made for the prohibition of issuing an eviction order, such as the fact that the lessor can force the lessee to vacate the property if the property is sold, or that if the lessor’s children get married, he can rent the residential unit. Force the tenant to vacate the property.

Criticisms to determine the rent ceiling

However, the policy of determining the rent ceiling, which was announced this year for the third time in a row, has been criticized and has its opponents, as in previous years.

Opponents of this plan believe that in a situation where the average housing price has grown significantly and the point-to-point inflation rate has now crossed the 50% mark, how is it possible to set a certain ceiling for the rent and oblige the owners to comply with this law? follow? Of course, the owner cannot be legally forced to sell or rent his property for a certain amount.

Predicting a difficult year for tenants

This year’s housing market did not go through favorable conditions. The emergence of the crisis in other financial markets has put housing prices on an upward path, and although the rental price has not increased in line with housing prices, it has still experienced significant growth.

The occurrence of inflation and the growth of the dollar have also made experts believe that next year the growth of housing prices and rents will experience a faster rate and tenants will be in a more difficult situation.

In general, the policy maker should take into account that the solution to the problems of the housing market is not hidden within itself in most cases, but to control the housing price and rent and improve the situation of the applicants in this area, the macro-economic and political problems should be smoothed.

Read the latest housing news on Tejaratnews housing news page.