Overview

• The Bundestag approved prolonging the rent cap until December 31, 2029, to curb rising housing costs in designated tight markets.
• New leases in areas classified as ‘angespannter Wohnungsmarkt’ remain limited to no more than ten percent above the local average rent, while new builds and comprehensively modernized units stay exempt.
• Hubig intends to introduce clear limits on hidden furniture surcharges, outlawing schemes that exploit furnished rentals to circumvent the cap.
• An expert group will be convened to recommend further enforcement measures and penalty mechanisms for landlords who exceed the legal rent ceiling.
• The extension drew praise from the Deutscher Mieterbund for safeguarding affordability and criticism from Haus & Grund, which warned it could undermine new construction.