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High inflation could lead to increased rents for some people from June

06:02 31/05/2022

One consequence of the current high inflation is a sharp rise in rents. If your rental lease comes into effect in June, the rent may be increased by 8.3%, reports RTBF. 

Inflation climbed from 8.31% to 8.97% in May, its highest level since August 1982, when it stood at 9.02%, according to national statistics office Statbel.

Rising inflation leads to an increase in the consumer price index and the health index. The health index is used, among other things, to calculate the indexation of wages, social benefits, but also rents.

The increase in the health index could lead to an indexation of certain rents of 8.3%. The health index, which was 110.99 at the end of May 2021, rose to 120.25 at the end of May 2022. This represents a difference of 8.3%.

The rents that can be indexed in June are lease contracts that were concluded in May and that came into force in June. Thus, for a rent of €1,000 at the time of signature in May 2021, the owner is entitled to index the rent to €1083.43 from June. A rent of €800 included in a lease concluded in May 2021 could increase in June 2022 to €866.74.

The indexed rent is calculated according to the following formula: the basic rent multiplied by the new health index (120.25 for May 2022), divided by the starting health index (110.99 for May 2021). Further information is available on the Statbel website.

To index a rent, there are certain conditions. If there is a written contract between the landlord and the tenant and that contract dates from before February 28, 1991, indexation must have been provided for by both parties. For a written contract concluded between 28 February 1991 and 31 May 1997, indexation is permitted. For a written contract signed after May 31, 1997, indexation is allowed unless the contract excludes it.

If the rental contract is oral, indexation is not allowed.

Written by Nick Amies

Comments

Frank Lee

Why June? This increase due to inflation has already been affecting renters for a few months now...

May 31, 2022 11:28