The Federal Cabinet has decided to extend the rental price brake until 2025. The Ministerial Round approved the bill presented by Minister of Justice Christine Lambrecht (SPD).
In areas with a "tense housing market", the rent brake covers the costs of new or re-lettings to the level of the local comparative rent plus ten percent.
"Living must remain affordable, whether for rent or property," said Lambrecht. The extension and tightening of the rental price brake will further dampen the dynamics of rental development until 2025. In addition, tenants could in the future reclaim too much rent also retroactively for the first two and a half years of the tenancy.
Reform of brokerage commission
The bill creates the prerequisites for the price-dampening regulations to continue to apply after a period of five years. For this purpose, it should be made possible for the countries to determine an area with a tense housing market again by ordinance.
The Cabinet also approved the reform of the brokerage commission on the purchase of real estate. In the future, it should be paid at least half by the seller. Both bills are part of the residential and rent package of the Federal Government.
This would "noticeably" reduce the costs of acquiring residential property, said Minister Lambrecht. "This makes it easier for families to relocate to their own homes and build a future-proof retirement." Critics, however, doubt the effectiveness of the measure. In fact, they fear that the situation will be exacerbated by preventing builders from providing housing.