Defending Tenants: The Battle for Affordable Housing in Lake Geneva

2023-12-11 05:38:05

– What if we defended the tenants?

Denis Corboz

Published today at 6:38 a.m.

When supply is high and demand low, prices fall. Conversely, prices rise when there are few vacancies and an increasing number of people looking for housing. This is exactly what has been happening for twenty years in our canton, particularly in the cities. Rents in the Lake Geneva region have more than doubled in twenty years. An increase out of proportion!

“Rents in the Lake Geneva region have more than doubled in twenty years. An out of proportion increase!”

When the sale price of a scooter or a watch doubles, it’s annoying, but we can live with it… because these are not essential products. But housing is different, it is an essential good. Rents that are too expensive force tenants to spend a very large part of their income paying for their accommodation.

To stop this continued increase in rents, a law was submitted to the people, the law on the preservation of the promotion of rental stock (LPPL). This law – obviously contested by economic and real estate circles – was accepted by the Vaud population in 2017.

Although close to real estate circles, the PLR ​​did not dare to contest the merits of this law. But what annoys the right is the right of pre-emption. This right offers municipalities the possibility of acquiring a building as a priority, in place of a buyer. There is, however, one condition for municipalities to be able to buy over other buyers: they must commit to creating public utility housing, i.e. housing whose rent is lower than the usual market.

The City of Lausanne has already used its right of pre-emption several times. She bought 200 homes. And to put it simply, the winners of the right of pre-emption are the tenants!

And this is what angers the PLR ​​and economic circles. They accuse the municipalities of Prilly and Lausanne of distorting the market and behaving like a real estate developer. On these two points, it is quite fair. With the right of pre-emption, municipalities can behave almost like real estate developers… With the big difference that they do not seek to make maximum profit from rentals, but on the contrary are concerned with offering their population affordable rents. .

Correct the market

As for distorting the market, let’s say it’s more about correcting the market. As of June 1, 2023, 0.98% of housing units were vacant in the canton, so the market is currently completely distorted against tenants.

Today, the right-wing majority in the Council of State is seeking to weaken the right of pre-emption. This is all the more unacceptable at this time when mortgage rates are rising and many tenants risk no longer being able to pay their rent.

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