(Gemini Audio)
(de-news.net) — In light of escalating concerns over housing affordability across Germany, Federal Building Minister Verena Hubertz (SPD) has advocated for more robust regulatory measures targeting furnished apartment leases and indexed rental agreements. Media reports indicate that Hubertz considers the current legal framework insufficient to curb excessive rent practices, despite Justice Minister Stefanie Hubig’s recent decision to extend the rent cap for an additional four years. Hubertz is said to have emphasized that while increasing housing supply remains essential, it must be accompanied by fair and transparent rules to protect tenants from exploitative pricing models.
The minister reportedly pointed to examples in major cities where landlords have charged disproportionately high rents by adding minimal furnishings to properties. She expressed her intention to clarify rental contracts by clearly distinguishing between base rent and furniture-related surcharges. According to Hubertz, such practices distort the rental market and undermine affordability, prompting her call for greater transparency as a prerequisite for meaningful reform. She also referenced an expert commission established by the Federal Ministry of Justice, tasked with evaluating potential regulatory responses to the challenges posed by indexed rental agreements.
In addition to rental reforms, Hubertz proposed a significant overhaul of housing subsidy programs. Reports suggest she aims to consolidate the current array of initiatives into two simplified schemes—one dedicated to new construction and the other to building renovations—while maintaining a strong focus on supporting families. She reportedly expressed openness to revisiting the former child homeownership subsidy, indicating that various policy scenarios were under review to determine which measures could deliver the most effective relief to prospective homeowners.
Hubertz also addressed the ‘Young Buys Old’ program, noting that recent improvements to its conditions have led to a substantial increase in participation, with commitments reportedly tripling. While acknowledging persistent criticism regarding income eligibility thresholds, she suggested that adjustments were under consideration, although regionally differentiated limits were deemed legally unfeasible. Regarding the EH-55 energy efficiency standard, Hubertz clarified that ongoing funding would be restricted to surplus construction projects, citing limitations imposed by federal budget regulations.
Justice Minister Stefanie Hubig (SPD), speaking ahead of the release of the 2025 Rent Report, reaffirmed her commitment to strengthening tenant protections. She reportedly plans to introduce legislation later this year aimed at closing loopholes that allow landlords to circumvent rent control measures through short-term and furnished rentals. Hubig is said to believe that clearer and fairer rules would benefit both tenants and landlords who comply with existing regulations. Her proposed legislative package is expected to strike a balance between safeguarding tenant rights and respecting legitimate landlord interests.
Following these federal-level initiatives, Berlin’s Mayor Kai Wegner (CDU) called on the national government to provide stronger support to states grappling with rent inflation. According to reports, Wegner urged federal authorities to enable stricter enforcement mechanisms and harsher penalties for violations of rent control laws. He also advocated for measures to reduce construction costs, including deregulation, targeted subsidies, and faster planning and approval procedures. Wegner emphasized the importance of collaboration with private investors and housing cooperatives, noting that Berlin’s publicly owned housing companies were on track to meet their new construction goals.
As the Bundestag prepares for Thursday’s vote, the Left Party is expected to present its proposal for a new rent-gouging law. The initiative aims to enhance legal tools available to combat excessive rental pricing and ensure greater protection for tenants in an increasingly strained housing market.
