The property professionals’ solution

On June 2, 2025, the Federal Housing Office (FHO) confirmed that the reference mortgage rate applicable to leases remains set at 1.5%. This stability follows the decrease that occurred last March (from 1.75% to 1.5%), which paved the way for numerous requests for rent reductions.
But what does this stability mean for real estate professionals? Here's what you need to know.

A key indicator for rent management

The reference rate is used to adjust rents during the term of leases throughout Switzerland. It is calculated based on the weighted average rate of banks' mortgage loans and rounded to the nearest quarter point. It is published quarterly by the FOH.

• A 0.25 point increase in the rate allows for a 3% rent increase (if the lease is based on the previous rate).
• A 0.25 point decrease entitles the tenant to a 2.91% rent reduction.

Why hasn't the rate changed?

The average mortgage rate fell from 1.53% to 1.44% on March 31, 2025. However, mathematical rounding keeps the reference rate at 1.5%. This average rate would have to fall below 1.38% for a further reduction to be considered.
As a result, there will be no further automatic rent reductions at this stage.

Practical examples

If the lease is based on an old rate of 1.75% (or more)
The tenant can still request a rent reduction.

If the lease is based on a rate of 1.25%
The landlord can demand an increase of around 3%.

The applicable rate is usually stated in the contract or in the latest rent notification. It is essential for property managers and professionals to be familiar with it in order to respond to requests or anticipate future ones.

What about other criteria?

The mortgage rate is not the only factor in rent adjustments. Maintenance costs, inflation (consumer price index), and work that adds value to the property may also be taken into account in the calculation.

In summary

No immediate change in June, but there is still room for maneuver depending on the original lease rates. Regular monitoring of this indicator therefore remains essential in order to adapt your rental management strategy. The next status update is scheduled for September 2025.



Sources
24heures.ch- Article
swissinfo.ch - Article
news.admin.ch - Article