Overview

• The Bundestag and Bundesrat approved extending the Mietpreisbremse until December 31, 2029, maintaining a 10% limit on new rents in designated tight housing markets.
• Under current rules landlords who exceed the cap face only rent-refund orders, a mechanism Hubig deems insufficient and intends to replace with a structured fine regime.
• Hubig’s planned expert commission will begin work after the parliamentary summer break and is charged with drafting penalty proposals and broader reforms by late 2026.
• The commission’s mandate includes closing carve-outs for newly built or modernized units, furnished and short-term leases, and tightening index-linked contract regulations.
• The Deutscher Mieterbund welcomed the extension but emphasized that sharper enforcement and meaningful sanctions are essential to curb escalating urban rents.