BERLIN (dpa-AFX) - German Federal Justice Minister Stefanie Hubig plans to introduce a draft law to cap indexed rents before the end of December. "An increase in indexed rents cannot be left open-ended," Hubig told the Redaktionsnetzwerk Deutschland (RND).
The SPD politician warned that indexed rental contracts could become a financial trap for tenants: "Because when consumer prices rise, indexed rents increase accordingly. Tenants are therefore burdened twice over."
"We saw this when, as a result of Russia's war of aggression against Ukraine, indexed rents suddenly skyrocketed," Hubig said. "Especially when the overall cost of living rises, indexed rents increase significantly. That is why I want to introduce a cap," she announced.
Hubig had previously stated her intention, following the extension of the rent cap for another four years, to also amend the rules for indexed rental contracts, short-term leases, and furnished accommodation./sl/DP/zb
