Particle.news

Download on the App Store

Germany Moves to Toughen Rent Cap With 'Painful' Fines, Eyes Furnished and Index Rents

An expert panel has begun drafting reforms to support an enforcement push that sits alongside a bid to speed up homebuilding.

Overview

  • Federal Building Minister Verena Hubertz called for fines that “really hurt” for violations of the Mietpreisbremse, arguing it is currently too easy to ignore the rules.
  • She wants furniture surcharges itemized in leases for furnished units and closer scrutiny of inflation‑linked contracts, while noting abusive sublets remain hard to police.
  • The rent cap for new leases in designated areas remains in force through 2029, limiting initial rents to 10 percent above local reference levels.
  • The government plans to advance a “Bauturbo” law to accelerate permits in October, alongside a 2025 building budget of €7.4 billion plus €11 billion from a separate investment fund.
  • A justice ministry commission has started work on proposals due by end‑2026, as commentators urge public rent registries, legally robust Mietspiegel, and even municipal build obligations.