Landlords and tenants: Removal of 25% rent limit is on agenda of Turkish Grand National Assembly

Senol Babuşcu, Head of the Department of International Finance and Banking at Başkent University, noted that the removal of the 25% rent limit was on the agenda of the Turkish Grand National Assembly (TBMM). Babuşcu also listed 5 new regulations that would come to the agenda of the Turkish Grand National Assembly.

Landlords and tenants should take note: Here are 5 regulations coming to the Assembly agenda…

Following President Recep Tayyip Erdoğan’s call for low interest rates and the ‘interest is the cause, inflation is the result’ thesis (some time ago), the Central Bank of the Republic of Turkey (CBRT) had lowered its policy rate to 8.50% before the elections in May.

While this economic model led to inflation and currency crises, causing the Turkish Lira to lose value, it also led to exorbitant increases in rents, pushing citizens who are already in difficult situations into further distress.

25% rent limit extended

As a result of these developments, a 25% limit was imposed on rent increase rates starting from July 1, 2022, for a period of one year. However, due to the worsening economic crisis, the 25% limit on rent increase was extended for another year from July 2, 2023, to July 2, 2024.

Mediation period begins

Furthermore, due to the growing rental crisis, as of September 1, 2023, it was decided that landlords and tenants should first go to a mediator before going to court in case of disputes.

Is the 25% rent limit being lifted?

Following the economic crisis, the 25% rent limit did not ease landlord-tenant disputes, and Şenol Babuşcu, Head of the Department of International Finance and Banking at Başkent University, stated that the removal of the 25% rent limit was on the agenda of the Turkish Grand National Assembly.

Babuşcu, who shared a post on social media, also listed the 5 new regulations that would come to the agenda of the Turkish Grand National Assembly as follows:

1 – Cryptocurrency law will be one of the first legislative regulations to be discussed in the Assembly.

2 – There will be two bills on energy and tourist guidance in the Assembly.

3 – Tax exemptions and reduction rates will be discussed.

4 – The removal of the 25% rent increase limit will be evaluated.

5 – As part of the fight against informal economy, all future lease agreements are proposed to be moved to the e-Government platform.

SOURCE: https://www.ekonomim.com/foto-galeri/ekonomi/iste-meclis-gundemine-gelecek-5-duzenleme-galeri-737876