landlord Kühnert pushes for sealing rental agreement loopholes
In the realm of Germany's housing market, the Traffic Light Coalition (SPD, Greens, FDP) is set to take decisive action. The coalition, with a record budget of over €115 billion for 2025, aims to modernise infrastructure, climate action, social facilities, and various sectors, which may include housing construction initiatives.
SPD General Secretary, Kevin Kühnert, has been a vocal advocate for renewed efforts to cap rent prices, particularly in overheated urban markets. The coalition plans to strengthen rental price caps in these high-demand areas to curb rent inflation.
Regarding regional disparities, the coalition intends to differentiate measures and funding allocation based on the unique supply-demand dynamics of each region. This approach aims to support both urban and rural areas equally.
The coalition also seeks to boost housing construction, focusing on sustainable modernisation and climate-friendly buildings. By incentivising building in regions with housing shortages, they aim to increase supply and potentially address regional imbalances.
Kühnert has expressed concern about the current system for determining tense housing markets, stating that it leads to disparities in benefits. He also criticised the leeway the states have in limiting rent increases. The extension of the rent brake is a topic of the coalition's consultations regarding housing construction.
The coalition's plans to tighten the cap limits on rent increases have been met with criticism by Kühnert, who believes that it's not just any kind of construction that is needed, but community-oriented housing construction. He has also highlighted gaps in tenancy law, particularly in connection with furnished lettings.
The coalition's consultations will also discuss the strengthening of community-oriented housing construction and addressing these gaps in tenancy law. In North Rhine-Westphalia, only Cologne and Düsseldorf are expected to benefit from the rent cap due to the inactive state government.
However, it's important to note that no direct statements or policy texts from the coalition's consultations were found in the search results. This assessment relies on the coalition's known priorities combined with the 2025 federal budget and infrastructure investment plans. For the most accurate and up-to-date details, consulting official coalition documents or government releases would be necessary.
As Kühnert aptly put it, where average income people can't find a home, numerous luxury lofts and penthouses don't help much. The Traffic Light Coalition's plans aim to address this issue and strive for a more balanced housing market across Germany.
Other policy-and-legislation discussions within the Traffic Light Coalition focus on strengthening community-oriented housing construction and addressing gaps in tenancy law, as stated by SPD General Secretary Kevin Kühnert. The coalition's plans for housing policy, found in the 2025 federal budget and infrastructure investment plans, aim to create a more balanced housing market across Germany, addressing concerns about luxury housing while focusing on average income people's needs.
