Housing: German Tenants’ Association warns that the rent cap is about to expire

The German Tenants’ Association warns of incalculable consequences if the rent cap expires. “Without a rent cap, re-letting rents will skyrocket because there would then no longer be an effective cap. Rents of an average of 17 euros per square meter and more will then be normal,” said the President of the German Tenants’ Association, Lukas Siebenkotten.

In a letter to all members of the German Bundestag, the tenants’ association called for the rent cap to be extended as soon as possible. Berlin’s Governing Mayor Kai Wegner (CDU) and the Mayor of Munich, Dieter Reiter (SPD), joined the demands.

Rent control expires by the end of 2025 at the latest

The rent brake expires in the federal states at the end of 2025 at the latest, first in Berlin on May 31st. In tight housing markets, it ensures that the rent when a new rental agreement is concluded can in principle not be more than ten percent above the local comparative rent. The respective state government decides on its application in certain areas. However, after the end of the traffic light coalition, the future of this regulation is uncertain.

Siebenkotten said: “Letting this instrument expire without being able to offer sufficient affordable housing at the same time would be extremely unreasonable.” According to the German Tenants’ Association, the rent cap currently applies in 13 of 16 federal states and a total of 410 municipalities. Around 30 percent of the total population, i.e. around 26 million people, live there. Only in Saarland, Saxony-Anhalt and Schleswig-Holstein does the regulation currently not apply.