BERLIN (dpa-AFX) - The rise in rents in many German cities is to be slowed down further. The federal cabinet has introduced a draft bill to extend the statutory rent cap until December 31, 2029. The regulation introduced in 2015 would otherwise expire at the end of this year. Justice Minister Stefanie Hubig (SPD) said there was no time to lose. "Housing must not become a luxury good." Tenants would receive the protection they needed. "It's a question of justice."
Instrument for tight markets
The rent cap applies in areas that the respective state government has designated as having a tight housing market. There, when a new tenant moves in, the rent at the start of the tenancy may not exceed the local comparative rent by more than ten percent. Exceptions include newly built apartments that were first rented after October 2014.
The CDU/CSU and SPD agreed on the extension in their coalition agreement. The cabinet has now decided on a draft bill to be introduced into the Bundestag by the coalition parties. /sam/DP/stw
