Rent control: SPD wants extension, CDU/CSU insists on rent index reform
In the German Parliament’s Grand Coalition, a new dispute is forming about the rent control law. The SPD is pushing for a validity period extension of another five years after 2020, while the Christian Democrats insist on an “indissoluble connection” with the planned changes to rent index laws. The SPD’s opposition faction, on the other hand, intends to give its “unreserved support” to proposed legislation introduced by Federal Justice Minister Katarina Barley (SPD). Barley presented the results of an evaluation of the law by the German Institute for Economic Research (DIW Berlin) on Thursday, along with an assessment on the legality of the rent regulation. In the report, DIW had found a braking effect on existing rents of 1–3% and, on the other hand, an investment-promoting price surge in new construction, which is exempt from rent control. Researchers nevertheless warn against an indefinite extension of the law.
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