Federal Minister of Justice
Stefanie Hubig (SPD) has a new one Legislative initiative on tenancy law for more affordable housing announced. “We are capping the increase in index rents at 3.5 percent per year,” Hubig told the partner newspapers der New Berlin editorial company. A few days ago she submitted a corresponding draft law to the internal government vote.
The minister justified this legislative initiative by saying that index rents based on the inflation rate rose sharply after the start of the Russian war of aggression on Ukraine. “Rent increases of six to seven percent annually or “even more are hardly manageable in the long run,” said Hubig. Their goal is for the rent package to come into force at the beginning of 2027 at the latest for all index rental agreements apply.
Hubig also wants to limit short-term rentals, for which there is currently no rent cap and which can be extended again and again, to a maximum of six months in the future. In the case of a longer term, apartments should be subject to the regular rent control.
The legislative initiative also provides for one Reform of furnished living. “The rental agreement must clearly state how high the basic rent is and how high the surcharge for furnishing is,” said Hubig. This creates transparency and makes it easier for tenants to see whether the rent cap is being adhered to. Hubig wants clear and practical regulations for calculating the furniture surcharge. Landlords should be able to charge a flat rate of five percent of the net rent for fully furnished apartments.
