October 19, 2019

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Rent in Berlin should be capped

https://www.handelsblatt.com/
Living in Berlin

The rent cover is to cover the rents for approximately 1.5 million flats and retroactively enter into force on 18 June 2019


(Photo: AP)

Berlin In Berlin, the recent sharp increase in rents should be frozen for five years. That's what the coalition committee agreed at its six-hour Friday night meeting, participants said.

Berlin's Mayor Michael Müller explained afterwards: "At last we were able to reach agreement on the #cabinet proposed by the SPD. The rents are frozen in Berlin for five years. Usher rents can be lowered. "The Green Economic Senator Ramona Pop tweeted: "The hard work was worth it: R2G has agreed. Good day for the tenants in Berlin. "

Berlin's Party Senator Katrin Lompscher (left) explained: "In the next five years, no tenant has to fear any more, because of exorbitant rent increases or high Modernisierungsumlagen the roof over the head to lose."

The law is intended to cover rents for around 1.5 million apartments built before 2014. It is due to enter into force retroactively to June 18, 2019 at the beginning of 2020 – on which day the Senate had decided on the first cornerstones. Planned are next to the actual rent stop various flanking measures.

First, however, the Senate still has to decide on the bill and vote for the House of Representatives. For other major cities in Germany, the model with which Berlin entered new territory could be interesting.

The initially envisaged possibility to allow tenants a lump sum in addition to the cover, if they spend more than 30 percent of their net income on housing costs, is reportedly off the table. It would have meant intervening on a broad front in existing leases.

The background for the Mietendeckel plans is the tense housing market in the capital. In some parts of the city, ordinary earners hardly have a chance to find an affordable place to stay. According to the Federal Ministry of Agriculture, rents for free apartments have doubled to an average of € 11.09 per square meter net in 2018 in 2018.

The rise in rents in Berlin is thus stronger than elsewhere in Germany. This causes heated discussions in the city, an initiative has even strained a referendum on the expropriation of large housing groups.

More: The SPD is planning a nationwide rental stop.

Rent (t) Housing (t) Rent cover (t) Berlin (t) Real estate market (t) Real estate mirror (t) Housing policy (t) Tenancy law (t) SPD (t) Rental companies (t) Building construction (t) construction industry