Rent Increases a Concern for Senator; Calls for Additional Regulatory Measures
In a recent interview with RBB-Inforadio, Berlin's Senator for Urban Development, Christian Gaebler (SPD), emphasised the need for more effective measures to curb rising rents in the city. Gaebler, who represents the SPD party in Berlin's Senate, discussed the possibility of a rent cap in Berlin and advocated for the expansion of the rent brake to include new buildings.
The rent brake, a measure designed to limit rent increases in tight housing markets, was extended by the federal government recently. However, it currently restricts rent increases for new rentals in designated "tight markets" but excludes new buildings. This policy aims to control rapidly rising rents primarily in existing housing stock, limiting new rents to no more than 10% above the local reference rent.
Critics argue that this exclusion may have negative effects on new housing supply. Industry representatives warn that the extension may reduce the return prospects for investors and discourage investment in new construction, potentially worsening housing shortages.
Gaebler stated that it would be beneficial for federal states and cities in tight housing markets to take additional measures to curb rent increases. He also mentioned that such a measure would make it difficult for state-owned and community-oriented housing companies to make investments, like renovating their own buildings.
The federal government's extension of the rent brake for four more years for existing properties in tight markets has been controversial. Raed Saleh, the state SPD chairman, recently demanded that the federal government create an opportunity to prevent rents from exceeding a certain level.
Current policy discourse stresses the importance of coordinated measures that combine targeted rent regulation with incentives for speeding up new housing development. Discussions around implementing rent caps in cities with tight housing markets emphasise the need for reliable reference rents and stronger tenant protections, alongside policies to stimulate construction and renovation, to avoid deterring investment while controlling price rises.
Experts argue that rent control instruments like the rent brake have had limited success in improving access to affordable housing. They suggest that reforms need robust data infrastructure, better enforcement, and legal clarity; otherwise, landlords may circumvent rules or withdraw from the market.
The Senate in Berlin is currently discussing the possibility of expanding the rent brake to include new buildings. If implemented, this could potentially balance tenant protection with incentives for new construction, addressing the housing shortage in Berlin and other cities with tight housing markets.
The Senate in Berlin's discussion about expanding the rent brake to include new buildings is part of the ongoing policy-and-legislation debate, addressing the concerns in the general-news about housing shortages and rising rents. Such a change in policy could help balance tenant protection with incentives for new construction, making it more appealing for investments in the politics of housing development.
