The Berlin Senate has decided on Tuesday the controversial Mietendeckel for the capital. According to reports from Senate circles, the red-red-green state government implemented a compromise formulated by the governing parties on Friday.
The Coalition under the Governing Mayor Michael Müller (SPD) wants to freeze the sharp rise in rents for five years, also particularly high rents should be lowered taking into account the situation.
The rented cover is to apply for approximately one and a half million before 2014 built apartments in the capital. If the Chamber of Deputies approves the bill, it will come into force at the beginning of next year and then apply retroactively from 18 June this year.
The opposition considers the law unconstitutional, and the real estate industry fears that housing construction will be negatively affected. The Berlin tenants' association welcomes the plans.