High Expectations for Extension of the Rent Control Brake
Berlin (hib) – The federal government is planning to extend the rent control brake until 2029 and to tighten the regulations. This is intended to protect tenants from excessive rent increases. There are high expectations for the measure among tenant associations and social organizations, while the real estate industry is criticizing the plans.
Extension and Tightening of Regulations
The rent control brake, which has been in force since 2015, limits the amount by which landlords can increase rents. In areas with a tense housing market, the increase is capped at 10 percent compared to the previous rent. The regulation is intended to prevent excessive rent increases and to protect tenants from displacement.
The federal government now plans to extend the rent control brake until 2029 and to tighten the regulations. For example, the 10 percent increase cap should also apply to rents that are newly determined when a new tenancy agreement is concluded. In addition, landlords should no longer be able to use modernization measures as a reason for rent increases for eight years.
High Expectations and Critical Voices
Tenant associations and social organizations welcome the planned measures. They emphasize that the rent control brake is an important instrument to protect tenants from the consequences of the housing shortage. The German Tenants Association, for example, speaks of a “success story”.
The real estate industry, on the other hand, criticizes the plans. The German Tenants Association warns that the tightening of the regulations will make it more difficult to build new housing. The federal government must ensure that there is sufficient new construction so that everyone who needs an apartment can find a suitable one.
The plans of the federal government are still in the consultation phase. The German Bundestag is expected to make a decision in the coming months.
Hohe Erwartungen in Verlängerung der Mietpreisbremse
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