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As the 25 percent cap on rent hikes expired as of July 2, both landlords and tenants awaited the June inflation data, as rent hikes are supposed to align with the 12-month average consumer price inflation rate. The cap was introduced in June 2022 for two years but the government decided to discontinue it.
According to the latest figures from the Turkish Statistical Institute (TÜİK), the average inflation rate over the past 12 months was 65.07%, which will now serve as the upper limit for rent increases.
This will apply to contracts to be renewed after July 2 and does not mean rents should be increased automatically as much as the 12-month average inflation rate. Landlords may demand a hike less than inflation. Contracts are renewed only once a year and the rent hike is decided at the time of renewal.
According to laws, landlords cannot demand a rent hike above the 12-month average consumer price inflation.
The Central Bank of Turkey has noted that the annual increase in house prices continued to decline in real terms, while the seasonally adjusted data point to a significant slowdown in monthly increases in this item in recent months.
“This development in house prices is expected to have a restraining effect on rent inflation in the coming period,” the bank said.
Source: Hurriyet Daily News
Photo by Mehmet Uzut on Unsplash
