Overview

• Several German states, including Hamburg and Lower Saxony, are urging a federal extension of the rent control policy until 2029 to protect tenants from steep price increases.
• The rent control measure limits new rental contracts to a maximum of 10% above the local average rent in designated high-demand areas.
• The current policy is set to expire by the end of 2025, with some state-level measures ending even earlier unless renewed by federal legislation.
• The federal cabinet plans to propose an extension through 2029, but the lack of a parliamentary majority for the governing coalition casts doubt on its passage.
• States are preparing a separate legislative initiative via the Bundesrat, aiming for a vote on December 20 to ensure continuity of protections for tenants in strained housing markets.