The Brno-střed district council unanimously approved a freeze on rents for all flats managed by the district for the coming year. Photo Credit: SM / BD
Brno, Sept. 14 (BD) – At Monday’s meeting, the Brno-střed district council unanimously approved a freeze on rents for all flats managed by the Brno-střed district for the next year. This means that current rents will remain the same until 30 June 2024.
At the beginning of 2022, the Brno-střed Municipal district council decided not to increase rents by inflation in 2021. The rent flattening in 2023 applies to all lease contracts already concluded as well as contracts that will be newly concluded by 30 June 2023.
“The Brno-střed Municipal District decided in March 2022 that it would not increase the rent this year by inflation,” said the Mayor of Brno-střed, Vojtěch Mencl. “In view of the current difficult economic situation, when energy prices are rising significantly and when it is possible that next year’s rent increase could be up to 20%, I have proposed to the Council of the Brno-střed Municipal District to approve the decision not to apply the rent increase next year. The Council approved my proposal. The rent will remain at this year’s level in 2023 and until mid-2024.”
The contractual terms between the tenant and the Brno-střed district contain a condition, the so-called inflation clause, which entitles the landlord to increase the agreed rent by the average annual inflation rate in each subsequent calendar year. This is expressed by the increase in the average annual consumer price index announced by the Czech Statistical Office for the previous calendar year. The inflation rate in the Czech Republic is currently standing at 17-18%.
