Berlin’s senate getting serious about the rent ceiling


Berlin’s senate finalized a key issues paper for new rent legislation yesterday. The paper states that rents for the roughly 1.5 million uncontrolled apartments in the nation’s capital cannot be increased for five years. Newly built and publicly subsidized units are excepted.  The paper also calls for a rent ceiling, though the exact amount has not yet been defined. The measure could lower very high rents to an “acceptable level”, says city development senator Katrin Lompscher (“Linke” party). The law is to be passed at the start of 2020 and take effect retroactively to 18 June in order to prevent rent increases in the meantime. The real estate industry is expressing severe criticism. The law will prevent urgently needed new construction and alienate investors, the construction industry and the ZIA state. The IVD and some legal experts believe the law is unconstitutional.

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