Rent deregulation bill makes it through first reading in parliament

17-08-2005

A government bill to raise regulated rent has made it through the first reading in the lower house of the Czech Parliament. The bill, which sees regulated rent increase by an annual average of 9.3% for a period of six years, is now to be discussed by a number of parliamentary committees. Under the government's proposal, the annual increases would begin in October 2006.

An estimated 750,000 flats are rent-controlled in the Czech Republic. If the bill comes into effect, an additional 36 billion crowns will be collected in rent, in the six years, according to Regional Development Ministry estimates.