Future of Germany's Mietpreisbremse Uncertain as Political Divisions Deepen

The rental price cap, set to expire in 2025, faces challenges as lawmakers debate its extension amidst rising housing costs.

The Mietpreisbremse, introduced in 2015 to limit rental increases in tight housing markets, is set to expire by the end of 2025, with some regions losing it earlier, such as Berlin in May 2025.
The collapse of the Ampel coalition has left the SPD and Greens reliant on opposition parties like the CDU/CSU and FDP, who have expressed skepticism or opposition to extending the measure.
The German Mieterbund warns of 'unkalkulierbare Folgen' if the regulation lapses, predicting significant rent hikes, particularly in urban areas where 26 million people currently benefit from the cap.
Critics argue that the Mietpreisbremse has been ineffective due to numerous exemptions, such as for new builds and modernized properties, while proponents see it as essential for maintaining affordability in overheated rental markets.
With the upcoming elections, the Mietpreisbremse has become a contentious issue, with parties proposing alternative housing policies ranging from increased social housing to stricter rental controls.