Particle.news

Download on the App Store

Berlin SPD Unveils Draft Vergesellschaftungsgesetz to Cap Rents

Invoking Article 15 of the Basic Law to cap rents for five years, the draft law has drawn criticism from CDU lawmakers alongside sharp objections from housing activists.

Image
Image
Image
Image

Overview

  • The SPD parliamentary group officially released a 27-page draft law to regulate housing and essential services under Article 15 of the Basic Law.
  • Under the proposal, Berlin could impose a five-year price cap on all landlords and extend oversight to energy, water and heat provision to ensure basic public welfare.
  • CDU leader Dirk Stettner insists the measure is intended only to establish a legal framework for market interventions and rejects any form of rent control.
  • Lawmakers plan to submit the bill to the Abgeordnetenhaus by mid-December, with a mandatory two-year delay before it can take effect.
  • The initiative Deutsche Wohnen & Co enteignen has denounced the proposal as legally unsound and warned of a likely constitutional challenge.