(de-news.net) – The German Tenants’ Association (DMB) has issued a cautionary statement against the non-extension of the rent control mechanism. According to DMB President Siebenkotten, failing to extend this measure would be exceedingly imprudent, particularly given the strained housing market. Without political intervention, the rent control mechanism is set to expire in 13 federal states by the end of 2025, with Berlin being the first on May 31. Siebenkotten foresees a significant surge in new lease rents without this cap, as there would no longer be an effective limit. Consequently, average rents could rise to 17 euros per square meter.

Currently, the rent control mechanism ensures that in designated tight housing markets, rent increases for new leases are generally capped at up to ten percent above the local comparative rents. The implementation of this control is determined by the respective state governments.

The DMB reported that the regulation is currently in effect in 210 municipalities. However, it is not applied in Saarland, Saxony-Anhalt, and Schleswig-Holstein. Following the dissolution of the traffic light coalition at the federal level, the future of the rent control mechanism remains uncertain.

In a letter to the members of the German Bundestag, the Tenants’ Association has called for a prompt extension of the mechanism. Prominent politicians, including Berlin’s Mayor Wegner (CDU) and Munich’s Mayor Reiter (SPD), have already endorsed such demands.