İYİ Party submits comprehensive 'rent' motion to the Turkish Parliament

Following Treasury and Finance Minister Mehmet Şimşek's signal that the 25 percent cap on rent increases would be lifted, an important step has been taken by the İYİ Party.

Zorlu stated that, considering the economic crisis Turkey is in and the fact that the majority of the population is trying to survive on the minimum wage or less, abandoning the practice without taking necessary measures would leave citizens who are forced to live in rented housing in a difficult situation.

Stating that if the rent increase cap is lifted, the ability to reflect the increase in the CPI onto rents would create great difficulty for citizens, the majority of whom live on minimum wage, Zorlu invited officials to take urgent measures with the words, "Let's take precautions together now. If we are not going to discuss it now, when will we?"

Here is the motion submitted by Kürşat Zorlu to the TBMM:

"Treasury and Finance Minister Mehmet Şimşek, in a television program he attended, signaled that the practice should not continue by saying, 'I do not see any reason for the 25 percent rent increase cap applied to residential rents to continue.'

It is highly probable that this practice will be terminated in a short period of time. Considering the economic crisis our country is in and the fact that the majority of the working population is trying to survive on the minimum wage or less, abandoning the practice without taking necessary measures will leave our citizens who are forced to live in rented housing in a difficult situation.

In order to ensure that our citizens are not crushed under exorbitant rent hikes while dealing with economic problems, we request and demand the opening of a Parliamentary Inquiry in accordance with Article 98 of the Constitution and Articles 104 and 105 of the Rules of Procedure of the TBMM, with the aim of examining and rapidly developing preventive measures together."

JUSTIFICATION

"In order to protect our citizens living in rented housing from the economic crisis and high inflation in our country, a temporary article was added to the Turkish Code of Obligations in 2022, and rent increases were capped at 25 percent. Although there were property owners who did not comply with this rule, it allowed some of our tenant citizens who are struggling to make a living to breathe a little easier.

The duration of this added temporary article will expire on July 1, 2024. Treasury and Finance Minister Mehmet Şimşek, who participated in a television program, said, 'I do not see a reason for it to continue, I think it should not continue. There is no work being done for it to continue. This regulation was already made for a period of time. I cannot comment on a decision that has not been made on behalf of our government, but I think it will most likely not continue. I believe that prices should not be intervened in the market,' stating that they would not extend the practice in question.

It is known that residential rents in our country reach an average of 15 thousand TL. According to a report prepared by a university, the average price per square meter for rental housing is 185.7 TL in Istanbul, 131.6 TL in Ankara, and 160 TL in Izmir. Given the point reached by the hunger and poverty threshold, if no other solution is produced, people trying to make a living below these levels will drive our citizens who are struggling to make a living into a much greater impasse.

Indeed, if this limitation is lifted, property owners will be able to increase rents at the annual CPI rate unless there is a contrary provision in the rental contracts. The annual CPI rate for April 2024, most recently announced by TUIK, is 69.80%. In our country, where there is no economic stability, serious decreases in these rates are not expected. In our country, where the current rent average is 15 thousand TL, how could it be possible for our citizens, the vast majority of whom live on minimum wage, to pay these rents if an approximately 70% increase is applied to these rents?

Lifting the 25 percent rent increase cap without achieving economic stability means placing the burden of rent on top of our citizens who are already struggling to make a living. We propose the opening of a Parliamentary Inquiry in order to examine and rapidly develop preventive measures together so that our citizens are not crushed under exorbitant rent hikes while dealing with economic problems."