Tag: reform

  • Experts call for construction process reform

    Experts call for construction process reform

    A study conducted on behalf of the Federal Office for Spatial Development and the Federal Office for Housing puts it in a nutshell. Objections (60 %) and appeals (61 %) are considered to be the biggest obstacles to the realisation of new projects for Swiss housing developers. In the comprehensive survey of over 440 experts from the construction industry, architecture, law and administration, it became clear that the current system is largely too susceptible to delays and abuse.

    In particular, so-called abusive objections are a source of displeasure. These often do not serve to protect legitimate interests, but to deliberately block construction projects, sometimes with extortionate motives.

    Massive consequences for the market and society
    The impact on the housing market is far-reaching. Around 80 per cent of the construction managers surveyed stated that objections and appeals were delaying the market launch of flats. 71 per cent reported significant cost increases, which is ultimately reflected in higher rents and purchase prices.

    Especially in times of acute housing shortages, this development harbours political and social dynamite. Calls for decisive countermeasures are growing louder.

    Experts call for targeted intervention in the appeals process
    The authors of the study propose far-reaching measures that the federal government, cantons and municipalities should implement in order to speed up planning and approval processes. A key recommendation is that the right of appeal should be restricted to “directly and particularly affected persons”. Residents with a general interest would no longer be automatically legitimised.

    In addition, admissible objections should in future be limited to specific, individual interests. The abolition of the suspensive effect of building law appeals is also under discussion in order to counteract arbitrary delays.

    Systemic relief for the authorities
    Another lever relates to the structure of the appeal bodies. A reduction in the number of appeal stages, improved coordination between the relevant authorities and clearly defined deadlines could noticeably speed up procedures. It is also crucial that the authorisation offices are adequately staffed, particularly in cities with high levels of construction activity.

    Political decisions are imminent
    The study was conducted as part of the national action plan against housing shortages. The ARE and the BWO are now examining the proposed measures for forwarding to DETEC and the EAER. On this basis, the Federal Council will decide which proposals to recommend for implementation.

    One thing is certain: without far-reaching adjustments to the legal protection procedure, there is a risk of further years of deadlock. The political will for structural reform is now needed for sustainable housing development.

  • Standstill in the owner-occupied rental value debate

    Standstill in the owner-occupied rental value debate

    The abolition of the imputed rental value, a tax that is unique in Europe, is in danger of failing once again. There is broad agreement in both councils that the system needs to be reformed. However, its implementation remains highly controversial. The issues of property tax for second homes and the debt interest deduction in particular are causing conflict.

    In its third deliberation on Thursday, the Council of States maintained the abolition of the imputed rental value for primary residences only. It also maintained its position on the debt interest deduction. In future, deductions of up to 70 per cent of taxable property income should remain permitted. The National Council, on the other hand, is calling for a complete system change and also wants to exempt second homes from tax.

    Tourism cantons put the brakes on
    The majority rejection in the Council of States is primarily due to the concerns of the tourism cantons. They fear a considerable loss of revenue due to the abolition of the imputed rental value for second homes. The proposal of a property tax to compensate for this has met with resistance there. “We need to focus on primary residences,” emphasised Martin Schmid (FDP/GR). The introduction of a property tax would present “extremely high hurdles”, as it would require a constitutional amendment with a double majority.

    Realistic collapse of the bill
    The collapse of the bill seems increasingly likely. Even the abolition of the imputed rental value for primary residences is facing headwinds. The tenants’ association has already announced a referendum. Its president, Carlo Sommaruga (SP/GE), criticised the bill as a “tax giveaway for rich homeowners” that does not solve the inequality between tenants and owners.

    Doubts are also growing within the centre-right parties. Pascal Broulis (FDP/VD) warned that the bill would unnecessarily complicate the tax system. The National Council must first decide on the bill again before a possible conciliation conference could follow. However, there is currently no majority solution in sight.