Switzerland’s rent reference rate remains at 1.25% from 2 September 2026, unchanged since September 2025, meaning no new automatic rent adjustments arise from this quarter’s publication. But many tenants who have not yet claimed reductions linked to earlier cuts may still be paying too much.
The Federal Office for Housing (BWO/OFL) confirmed on 1 September 2026 that the mortgage reference rate for rental contracts stays at 1.25%, because the underlying average mortgage rate of 1.31% remained within the neutral band between 1.13% and 1.37%.
If the rent is still based on a reference interest rate of 1.5% or higher, there is generally still a right to a reduction.
Since the rate has not moved compared with the previous quarter, the BWO said there is no new entitlement to rent reductions or increases based solely on this latest announcement.
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Why Tenants Should Still Check Their Contracts?
Despite the unchanged rate, housing advocates and consumer outlets stress that many tenants have not yet claimed reductions stemming from the two reference-rate cuts in 2025, when the rate fell from 1.75% to 1.50% and then to 1.25%.
The Swiss Tenants’ Association (ASI/MIETVERBAND) said most renters have not yet obtained rent reductions even though the reference rate dropped twice last year, and urged tenants to check their contracts and, if necessary, actively request a reduction.
Comparis and Beobachter likewise note that rent reductions are never automatic in Switzerland: tenants must submit a written request to their landlord or property manager, ideally by registered mail, and specify the reference rate stated in their contract or last rent-adjustment notice.
If a lease still references a rate of 1.5% or higher, the tenant generally has a right to a proportional reduction, even though the official rate has now been stable at 1.25% for a year.
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Swiss Rent Reference Rate Stays At 1.25%: How Much Can Tenants Save?
The BWO indicates that a 0.25-percentage-point drop in the reference rate typically justifies a rent reduction of around 2.91%, assuming no offsetting cost increases.
For example, a tenant paying CHF 2,000 per month on a lease tied to a 1.5% reference rate could, in principle, seek a reduction of roughly CHF 58 per month if the rate has fallen to 1.25% and no valid counter-arguments apply. Exact amounts depend on the starting rate, the number of 0.25-point steps, and any landlord claims of higher operating or maintenance costs.
Tenants must act before the next ordinary termination date in their lease, usually respecting a notice period of three months for residential contracts. Requests should be in writing, state the current and contract reference rates, show the calculation, and propose an effective date aligned with the next permissible termination point.
Landlords have 30 days to respond. They may accept, refuse or propose a smaller reduction, for instance citing inflation, renovations or higher maintenance costs. If parties cannot agree, the case can be taken to the local rental conciliation authority.
For now, the unchanged 1.25% rate blocks new across-the-board rent adjustments tied to the reference rate. It neither creates fresh reduction claims nor provides landlords with a basis for rate-linked increases, at least until the underlying average mortgage rate moves outside the 1.13%–1.37% corridor.
However, the stability also means tenants who have already aligned their rents to 1.25% are unlikely to face immediate reference-rate-driven hikes, even as broader market rents in some regions continue to rise due to supply constraints and other factors.
The September 2026 decision itself does not generate new rent claims, but it reinforces a simple message from tenant groups and consumer advisers: if your lease still references 1.5% or more, you are probably entitled to a reduction and should request it in writing now, rather than waiting for landlords to volunteer an adjustment that the law does not require them to apply automatically.
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