BERLIN (dpa-AFX) - Federal Housing Minister Verena Hubertz (SPD) has announced plans to intensify efforts against so-called rent gouging, with a particular focus on stricter regulation of index-linked rents and furnished apartments. Speaking to newspapers of the Funke Mediengruppe, she stated: "Of course, we need more supply through housing construction, but we also need fair rules." She added that the extension of the rent cap until 2029, approved this summer, is not sufficient.
Furnished apartments, for example, are exempt from the rent cap. Hubertz criticized this loophole, noting that it is being exploited. "If someone puts an old couch in the corner and then charges EUR35 per square meter instead of EUR8 per square meter--which does happen in metropolitan areas--that has nothing to do with reasonable surcharges," the minister said.
With index-linked rental contracts, rents can be increased annually based on the consumer price index published by the Federal Statistical Office. This model does not include adjustments to the local comparative rent. Hubertz sees this as problematic: "During the energy price crisis, we saw how problematic it is when there are double-digit rent increases within a short period." She explained that an expert commission on tenancy law has been set up to address these issues and propose solutions.
