Kahlon takes aim at housing crisis with rent control plan

Finance Minister Moshe Kahlon on Monday unveiled a rent control plan that would restrict landlords from raising prices for the first 3-5 years after signing a contract with a tenant, aiming to address a housing crisis that has confounded politicians for years

According to the plan, first reported by Channel 2, rent would either rise by a fixed 2 percent annually, or alternatively be fixed by the Consumer Price Index (CPI).

The legislation is not Kahlon’s brainchild – it was proposed in the last Knesset but failed to garner support.

Kahlon, who has pledged to lower Israel’s staggering housing prices, said he would submit a bill outlining these terms in the coming months.

Also Tuesday, the government approved Kahlon’s request to assume control of the state’s top planning body, which was until now under the purview of the Interior Ministry.

The transfer of the Planning Administration to the Finance Ministry is part of the coalition deal between Kulanu, Kahlon’s party and Likud.

Transferring the Israel Lands Authority from the Housing Ministry to the Finance Ministry was also approved.

“Transferring the Israel Lands Authority and the Planning Administration to the Finance Ministry is a first step in the complex journey to solve the housing crisis. I am pleased the government chose to tackle this important issue in its first meeting and to approve the cornerstones of the reform,” said Kahlon.

Israel’s housing crisis, which has seen prices for buying and renting skyrocket in the last decade, was one of the central issues debated during the last elections, along with the high costs of living.

Under Israel’s current laws, there is no control over rent.