Overview

• The Bundestag held a first reading of the government’s proposal to prolong the Mietpreisbremse rent cap until year-end 2029
• Under current rules, rent hikes on new leases may not exceed 10% above local comparative rents in designated tight markets
• Exemptions for apartments built or comprehensively modernised since October 2014 will remain intact, prompting calls to close loopholes
• Hubig said the coalition has agreed to tighten regulations on index-linked leases and surcharges for furnished rentals
• Campaigners warn that lack of official enforcement data and absence of automatic oversight undermine the measure’s impact on soaring rents