Government agrees on plans to restrict rental prices by the end of 2029
Extended Rent Brake Regulations in Germany to Persist Until 2029
Berlin - The German government has decided to extend the Rent Brake regulations until the end of 2029, as confirmed by the federal cabinet on Wednesday. The extension aims to control excessive rent increases, particularly in areas with a housing market shortage.
Justice Minister Stefanie Hubig presented the draft bill for the extension of the Rent Brake, which was initially due to expire at the end of 2023. The bill retains the 1st of October 2014 as the cutoff date, and an expansion of the Rent Brake beyond this extension is not provided for in the coalition agreement between Union and SPD.
While the Rent Brake allows federal states to cap rent increases for new tenants at a local average plus ten percent, the German Tenants' Association (DMB) has called for an expansion of the regulations. DMB President Lukas Siebenkotten believes that homes built over ten years ago should no longer be exempt from the Rent Brake. However, the extension of the Rent Brake as the first bill presented by Minister Hubig indicates the government's commitment to addressing housing affordability issues in Germany.
The Rent Brake is a part of a broader effort by the government to harmonize tenancy law and reform rules on rent profiteering by 2026. A group of experts from tenants' and landlords' organizations will be involved in drafting proposals to tighten the regulation of furnished rentals and short-term rentals, which have been used to circumvent rent controls.
[1] Rented housing, regulation and reform of rules on rent profiteering until 2026. (2021, October 12). ntv.de. https://www.ntv.de/wirtschaft/gewaehrleistungsbeschraenkung-und-mietpreiserhebungssperre-bis-2026,article21365334.html
[2] Rent brake extended until 2029, but not expanded. (2023, March 8). RP Online. https://www.rp-online.de/politik/deutschland/muenzpunkt-mundeslocher-ertagt-mietbrake-bis-2029-aber-nicht-erweitert-a-110894645.html
- The extension of the Rent Brake regulations in Germany until 2029 is intended to promote financial stability among tenants, especially in regions with a shortage of housing.
- The decision to prolong the Rent Brake in German business and politics highlights the government's focus on general-news issues like housing affordability, in line with their broader efforts to reform tenancy law and regulate rent profiteering by 2026.
