Lower house passes bill phasing out rent control

The lower house has passed a bill under which state-controlled rent should increase by 14.2 percent annually between 2007 and 2010. Some 750,000 flats in the Czech Republic have controlled rent, which is about one fifth of all apartments in the country. At present, a dual system exists with the market rent of an identical flat in the same apartment building being several times higher than that of one subject to control. The bill has yet to be approved by the Senate and signed by the President.