State cabinet agrees on five-year rent freeze

State cabinet agrees on five-year rent freeze

After long and arduous debates, Berlin's state cabinet has agreed on a rent freeze for 1.5 million apartments.

Altbauten in Friedrichshain

© dpa

After months of discussions, the Berlin Senate has agreed on a "Mietendeckel" (rent cap) to counter rising housing costs in the German capital.

9,80 Euros per square metre or less

The draft law includes an upper limit of 9.80 euros per square metre or less, depending on the year of construction and features of the apartment and may not be exceeded in the case of re-letting. Current rents may not be more than 20 percent above the upper limits. Otherwise, tenants will be able to claim a reduction to this threshold.

Law to take effect from the end of 2020

The law on the Mietendeckel still requires approval by state parliamanet. If everything goes according to plan, the law will come into effect by the beginning of 2020 and will apply retroactively from 18 June 2019. The rent reduction rule will apply nine months later, i.e. probably at the end of 2020.

Real estate industry not happy

The real estate industry criticizes the plans and fears negative effects, among other things, on housing construction and on investments such as modernisation. The tenants' association speaks of a historic opportunity to secure affordable rents for the broad mass of the population.
TV Tower at Alexanderplatz
© dpa

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Source: dpa, translation, BerlinOnline

| Last edited: Wednesday, 23. October 2019 13:21 Uhr

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