Turkey's 25 percent rent cap will not suffice to address housing crisis, say experts
As per a new regulation adopted by the parliament earlier this week, annual rent price hikes have been limited to 25 percent until July 2023 amid the soaring inflation. However, experts have pointed out that the regulation only protects the old tenants and does not cover the new house rentals.
Nur Kaplan / DUVAR
The Turkish parliament on June 8 passed a new regulation limiting rent increases to a maximum of 25 percent for a year until July 2023. However, experts say that the new regulation, put forward by the ruling Justice and Development Party (AKP), is insufficient to address citizens' concerns and there is a need for a deep-rooted solution to the housing crisis.
Kerim Rota, in charge of economic policy at the opposition Future Party, said that the new regulation will pit homeowners and tenants against each other and will raise the tension between them. Calling on Finance Minister Nurettin Nebati to resign from his post, Rota said that the government is unable to brake the soaring inflation and that is what it should address in the first place.
Haci Ali Taylan, the president of the Federation of Real Estate Associations of Turkey, said that although he finds the 25 percent cap reasonable, there will be problems when it comes to its implementation. He pointed out that if the house has not been yet rented out, landlords can still hike the price to whatever amount they want and thereby increase the market price.
“How will the empty houses be rented out? What kind of a control mechanism will function there? For example, someone's house is empty and the house is being rented out. Who will determine the price there?” he asked.
Hakan Akçam, the president of Ankara Real Estate Trade Association, called for a more deep-rooted solution, referring to the models implemented in the Netherlands and Germany. He said that a mechanism including the state should be included in the leasing procedures.
He also said that the new regulation only protects the old tenants and not the ones who want to find affordable houses to live in. “Measures need to be adopted for those who want to rent a new house or want to lease their house,” he said.
(English version by Didem Atakan)