The 25 percent rent increase cap had been lifted: A critical call to the AKP government from Buğra Gökce!

Minister of Treasury and Finance Mehmet Şimşek, stating that he sees no 'reason' for the 25 percent rent increase cap to continue, "It most likely will not continue in July" had announced.

Following Şimşek's statement, Istanbul Planning Agency (IPA) President Buğra Gökce addressed the government in a post on his X account.

Stating that lifting the 25 percent rent increase cap would not solve the housing crisis, Gökce said, "Unfortunately, the steps taken so far are not aimed at solving the housing crisis, but rather at placing the entire burden of the resulting dire situation on the shoulders of the citizens through market mechanisms. We expect that this approach will not be persisted in for the good of the 85 million." he said.

Lifting the 25 percent rent increase cap will not solve the housing crisis. We cannot protect our citizens' right to housing solely through market mechanisms.

Today, finding rental housing has turned into a crisis for workers, retirees, and low- and middle-income earners. The average residential rent in Istanbul is 19,918... pic.twitter.com/FaXgPm1gsl

— Dr. Buğra Gökce (@gokcebugra) May 22, 2024

The full statement from Gökce is as follows;

"Lifting the 25 percent rent increase cap will not solve the housing crisis. We cannot protect our citizens' right to housing solely through market mechanisms.

Today, finding rental housing has turned into a crisis for workers, retirees, and low-to-middle-income earners. The average residential rent in Istanbul has risen to 19,918 Turkish Liras.

Residential rents in Istanbul have increased by 53 percent in one year. The increase rate over two years has reached 226 percent.

Among the 39 districts, the district with the highest average residential rent was Sarıyer at 51,591 TL, followed by Beşiktaş with 41,500 liras, Kadıköy with 32,820 liras, Bakırköy with 30,000 liras, and Beykoz with 27,443 liras.

The average residential  rent was lowest in the 5 districts of Sultanbeyli at 13,856 liras, Sultangazi at 12,961 liras, Esenler at 12,741 liras, Esenyurt at 11,765 liras, and Arnavutköy at 11,605 liras.

The ongoing housing crisis cannot be solved by leaving it solely to market mechanisms. Positive steps must be taken to protect the right to housing for students, employees, retirees, and low-to-middle-income individuals.

In Istanbul, students do not have access to enough dormitories. If the right to shelter is left entirely to market mechanisms, it will become even more difficult for students to access the housing they need. Many students will be unable to exercise their right to education because they cannot meet their housing requirements.

The incomes of white-collar and blue-collar workers are not rising at the rate of inflation. The increases in housing rents are making life difficult for workers and affecting their ability to make ends meet. Today, while one in every 10 people living in Istanbul goes to bed hungry, one in every two Istanbulites says they are worried about accessing sufficient food.

In 2001, the lowest pension was more than 1.5 times the minimum wage. Today, the pension is at 0.61 percent of the minimum wage. A pension is not enough to cover the rent for an average home in Istanbul. With market mechanisms, we will face "homeless retirees" and a major social problem.

According to ISKI data, approximately 2.5 million foreigners live in Istanbul. The sale of housing to foreigners also continues. In other words, a large population other than our own citizens is also demanding housing. This situation also restricts our citizens' access to housing.

The mindset that places the entire burden of problems accumulated over years of wrong policies onto the shoulders of citizens and low-to-middle-income groups must be abandoned.

Turkey needs a wide variety of social housing and a policy approach that provides solutions to problems in housing finance and production.

Instead of taking unilateral steps and ignoring or excluding local governments, the government needs to prioritize common sense, utilize the knowledge and experience of local governments, launch a mobilization to solve the housing crisis, and produce policies that the central government and local governments will jointly develop, determine, and implement. 

Unfortunately, the steps taken so far are not aimed at solving the housing crisis, but rather at placing the entire burden of the resulting dire situation on the shoulders of the citizens through market mechanisms. We hope that this approach will not be persisted in, for the good of all 85 million people."

News Source: 12punto

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