Overview

• The federal cabinet approved the extension of the Mietpreisbremse until December 31, 2029, maintaining a cap on rent hikes at 10% above local comparative rents in declared shortage areas.
• Exemptions remain for apartments first rented after October 1, 2014, and for comprehensively modernized units, a provision tenant groups argue significantly limits the law’s effectiveness.
• Deutscher Mieterbund president Lukas Siebenkotten urged lawmakers to update the 2014 cutoff, noting that ten-year-old buildings no longer qualify as new construction.
• Landlord associations, including GdW president Axel Gedaschko, warned that the regulation could discourage investment and slow the pace of new housing development.
• Justice Minister Stefanie Hubig signalled upcoming reforms to tighten rules on index-linked leases and enhance transparency for ancillary costs to bolster tenant protection.