Call for Increased Housing Regulation in Berlin

The ongoing challenge of rising rents in Berlin has prompted the Berliner Mieterverein to advocate for more robust housing regulations. While the proposed extension of the rental price brake until December 31, 2029, is a step in the right direction, it is deemed insufficient by housing advocates.

The rental price brake restricts landlords from charging more than ten percent above the local comparative rent for newly rented apartments. The Berliner Mieterverein views the extension as essential, particularly in a city where it has become a critical measure for protecting tenants.

Wibke Werner, the managing director of the Berliner Mieterverein, emphasized the importance of maintaining this regulation, as it is currently the only tool available to curb rental prices for new contracts. Without this extension, tenants in Berlin would face a precarious situation, lacking any protection against exorbitant rent increases.

However, the Berliner Mieterverein has raised concerns over certain exceptions to the rental price brake, particularly regarding new constructions. Since properties completed after 2014 are classified as new builds and thus exempt from the price brake, many believe this loophole undermines the intended protections for tenants. The Mieterverein is calling for a reevaluation of this classification, arguing that an eleven-year-old building should not still be considered new.

Additionally, the association has criticized the applicability of the rental price brake in cases of extensive modernization, where landlords may exploit the term to justify significant rental hikes. This concern extends to temporary rentals, often associated with furnished apartments, where a lack of transparency can lead to inflated prices through undisclosed fees.

In light of these issues, the Mieterverein is advocating for a broader regulatory framework for the housing market, including the socialization of housing companies. This approach aims to shift more properties into the hands of community-oriented enterprises rather than profit-driven landlords. The push for socialization follows the outcome of a 2021 referendum in which a substantial majority supported the idea of transferring ownership of large real estate companies with over 3,000 apartments to public control.

Moreover, the Berliner Mieterverein is also calling for the reintroduction of a rent cap, which was previously deemed unconstitutional by the Federal Constitutional Court in 2021. The court ruled that the state lacked the authority to impose such legislation. In response, the Mieterverein is advocating for an amendment that would allow states to implement their own rent caps, suggesting that the current rental price brake is not effectively fulfilling its intended purpose.

As Berlin continues to grapple with housing affordability, the calls from the Berliner Mieterverein highlight the urgency for comprehensive reforms aimed at protecting tenants and ensuring access to affordable housing.