Berlin Housing Crisis: Districts Call for Enhanced Protection Against Terminations for Personal Use

As the housing market in Berlin continues to face significant challenges, multiple districts are urging federal representatives from the CDU and SPD to strengthen protections against the conversion of rental properties into owner-occupied apartments and against terminations for personal use. A coalition involving several districts, including Friedrichshain-Kreuzberg, Neukölln, Mitte, and Pankow, has expanded to include Lichtenberg and two districts with CDU councilors, Charlottenburg-Wilmersdorf and Tempelhof-Schöneberg.

This coalition is making demands of the federal government, which is set to negotiate a new coalition in the coming weeks. A key request is to extend the current ban on converting multi-family homes into condominiums, which is due to expire at the end of 2025. Additionally, the coalition seeks to impose stricter regulations on the grounds for terminations due to personal use, proposing that only owners and their immediate family members should be able to claim this right.

The Berlin Tenant Association estimates that over 10,000 households in the city are affected by terminations for personal use each year, although not all tenants contest these terminations.

The coalition also includes the Berlin Tenant Association, various tenant advisory services, and the AKS Common Good organization. Support for the coalition's demands has come from the German Tenants' Association, the Hamburg Tenant Association, and the Munich Tenant Association.

In a recent media briefing, Christoph Brzezinski, a CDU councilor from Charlottenburg-Wilmersdorf, acknowledged that while some of the demands may not align perfectly with traditional CDU policies, the severity of the housing situation necessitates a response that transcends party lines. He described the current circumstances as not merely a political issue but one of the most pressing social challenges today.

Brzezinski indicated that discussions around rental and housing market regulations have often been ideologically charged in recent years. He emphasized that the upcoming coalition negotiations represent a critical opportunity to advocate for urban interests that are vital for cities facing such crises.

Despite his support for property ownership, Brzezinski noted that the current market conditions make it increasingly difficult for average earners to purchase properties. He called for an emphasis on tenant protection and the extension of existing regulations regarding property conversions.

While the coalition does not aim to eliminate terminations for personal use entirely, Brzezinski highlighted the need for longer notice periods, a narrower definition of who qualifies for such terminations, and increased barriers to prevent misuse.

Recent data from the Investment Bank of Berlin reveals that a significant portion of converted properties sold in 2022--56%--were sold vacant, with only 5% being sold to existing tenants. This trend suggests that some owners may be falsely claiming personal use to facilitate sales or inducing tenants to vacate through minimal compensation.

Moreover, Pankow councilor Cornelius Bechtler (Green Party) pointed out the existence of business models focused on converting rental properties for profit, where investors buy buildings, convert them to condominiums, and then sell them at a markup.

Klaus Mindrup, a former SPD member of the Bundestag, noted that the conversion ban, introduced during the last grand coalition, has been effective but is set to lapse. He expressed optimism that the new coalition would swiftly renew this provision.