(de-news.net) – The German Bundestag has legislatively sanctioned the continuation of the rent control mechanism, known as the ‘Mietpreisbremse,’ through the conclusion of 2029. This regulatory instrument imposes a constraint on initial rental agreements, capping permissible rent levels at no more than ten percent above the prevailing local comparative rate. It is designed to apply predominantly within urban locales characterized by acute housing market pressures. The measure followed the ratification of fiscal relief provisions for corporate entities.
Endorsement for the legislative extension was secured through the support of the governing coalition—comprising the Social Democratic Party (SPD) and the CDU/CSU. The Greens supported the proposal. In contrast, the Alternative for Germany (AfD) expressed opposition, while The Left abstained from the vote.
During the parliamentary deliberations, representatives of the CDU/CSU framed the policy extension as an equitable balance between the legitimate interests of landlords and tenants, whereas SPD officials asserted the primacy of adequate housing as a social right. AfD delegates advanced the argument that continued regulatory intervention may exacerbate tensions within the residential property market. Conversely, The Left raised substantive concerns about the transparency and operational efficacy of the extended provision. Finally, left-leaning critics reiterated calls for more robust structural reforms, including the implementation of broadly encompassing rent indices and extended forms of rental ceilings that account for longer-term market dynamics.
Initially enacted in 2015, the Mietpreisbremse sought to mitigate disproportionate rent escalation in specified high-demand areas. In advance of the most recent parliamentary vote, Federal Minister of Justice Stefanie Hubig (SPD) reaffirmed the measure’s enduring relevance within an integrated housing policy framework. While acknowledging its limitations, she emphasized its instrumental role as a stabilizing mechanism and announced forthcoming legislative initiatives aimed at enhancing tenant protections, particularly concerning indexed leases and furnished rental arrangements.