Rent caps extended to 2025 upon Bundestag approval

style="float: right; margin-bottom: 10px; font-weight: 600;"Wed 9th Oct, 2019

The Cabinet has initiated plans to allow the capping of rent increases to continue for another five years. Additionally, the purchase of real estate should be made cheaper.

The federal government aims to let the rental price brake apply for another five years, until 2025 at the earliest. This is sometihng the Cabinet has agreed to, however the Bundestag still has to vote on this. In addition, in future tenants should be able to reclaim overpaid rent retrospectively for the first 2.5 years of their tenancy.  

"Housing has to remain affordable, whether for rent or property, and by extending and tightening the rental price brake we will further dampen the dynamics of rental development until 2025," said Federal Minister of Justice Christine Lambrecht. The price cap regulates the rent after a tenant moves to/within a popular rsesidential area: As a rule of thumb, the landlord may demand only ten percent more than the local comparative rent. Landlords who do not stick to this rule should pay back the excess rent - at least for a period of two and a half years.    The purchase of houses and condos should also be cheaper. If the seller has commissioned a broker, they should pay half the broker's fee. At the moment the buyer usually pays the fees completely. Both bills are part of the residential and rent package of the Federal Government, introduced in part as a response to public demand for action on high rent costs, which earlier this year saw large demonstrations in various cities in Germany.

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