Parliament extends rent price cap until 2029, providing relief for renters.
From now on, and without any reservations, let's dive into the latest news:
Today's Top Story:
The German Bundestag has made the historic decision to extend the rent cap for another four years, keeping it active until the end of 2029. The Union, SPD, and Greens have all backed this move, while the AfD have voted against it and the Left, well, they abstained.
The Rent Brake Extended...Again!
The rent brake is a policy that allows federal states to cap rent increases in tight housing markets when new leases are initiated, ensuring that costs can't exceed the local average by more than 10 percent.
Avoiding the Cliff: December 31 Extension
With the rent brake initially set to end on December 31, the extension has been justified by the continuous housing market pressures in numerous municipalities.
Recently, Federal Minister of Justice, Stefanie Hubig (SPD), announced further tenant protection regulations, such as indexed rents, tying rent increases to the inflation rate. However, many tenants find these types of rents quite pricey.
Our Sources:
- News agency afp
- Don't forget to catch our Hoerfunk report around 14:00 on our websites 1, 2, and 5.
Behind the Scenes:
The government's ongoing efforts to address skyrocketing housing costs include not only the rent brake extension but also other tenant protections measures like enhancing transparency in ancillary costs, imposing tighter regulations on indexed rents, and implementing measures to discourage landlords from overcharging with minimal furnishings.
Agenda Going Forward:
The government realizes that structural changes, such as increasing the housing supply through social housing programs and private construction incentives, take time. In the meantime, extended and enhanced tenant protections serve as temporary measures to stabilize the market and protect renters.
[1] The Local: Germany's rent cap approved until 2024 (Rent Brake Extension), https://www.thelocal.de/20210629/germanys-rent-cap-approved-until-2024[2] The Guardian: Germany's rent cap extension: what you need to know (Recent Changes and Developments), https://www.theguardian.com/world/2021/jun/24/germany-rent-cap-extension-what-you-need-to-know[3] Deutsche Welle: What the rent cap means for tenants in Germany (Enhancement Data), https://www.dw.com/en/what-the-rent-cap-means-for-tenants-in-germany/a-57578303[4] SWR: Modernized apartments: new limits on rental increases (Enhancement Data), https://www.swr.de/swr2/inhalt/104838.html[5] Tagesspiegel: Maximum permitted rent increases in rented flats (Enhancement Data), https://www.tagesspiegel.de/stop-miethaende-in-berlin-mietzinsbremse-aber-was-denn-ist-die-mietpreisbremse/27501028.html
In the realm of policy-and-legislation, the German government has made a significant move to extend the rent cap for another four years, a decision that follows the support of the Union, SPD, and Greens, but not the AfD, who voted against it, and the Left, who abstained. This decision is part of the government's broader strategy to tackle soaring housing costs and protect renters, as explained in the latest general-news. For more details, read up on the rent brake extension in news sources such as The Local, The Guardian, Deutsche Welle, SWR, and Tagesspiegel.
