BERLIN (dpa-AFX) — Germany's rent control law for new leases in high-demand housing markets, known as the Mietpreisbremse, will remain in effect until the end of 2029. A corresponding bill from the conservative-social democrat coalition secured the necessary majority in the Bundesrat.
Exceptions to the Rule
The Mietpreisbremse applies in areas designated by the respective state government as having a strained housing market. When a property is newly rented, the starting rent may not exceed the local comparative rent by more than ten percent. The local comparative rent refers to the average rent for similar properties, typically listed in official rent indexes.
Certain properties are exempt from this regulation, including newly constructed apartments first rented after October 2014, and units that are being rented out for the first time following comprehensive modernization.
Federal Justice Minister Stefanie Hubig (SPD), who is responsible for tenancy law, has pushed the extension forward with urgency. At the same time, she emphasizes that further reforms in tenancy law are necessary—including measures to prevent landlords from circumventing rent control through short-term leases or renting out furnished apartments./abc/DP/men
