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Germany’s Housing Minister Moves to Curb Rent Gouging, Backs Levy on High Earners in Social Flats

The minister sets out proposals to close loopholes on furnished as well as index-linked rents pending expert recommendations.

Overview

  • Verena Hubertz proposes tighter rules for furnished rentals, calling for clear separation of base rent and furniture charges to stop misuse of exemptions from the rent cap.
  • She flags index-linked leases as a risk after recent price spikes and points to a Justice Ministry expert commission tasked with drafting concrete reforms.
  • Hubertz urges Länder to adopt a Hessen-style Fehlbelegungsabgabe so higher‑income tenants in subsidised housing pay a surcharge that recycles into social construction.
  • She cites roughly €50 billion in social-housing funding through 2029, including €23.5 billion from the federal government typically more than doubled by the states.
  • Reactions include Left leader Jan van Aken demanding swift action and fines up to €100,000 for rent gouging, while Mietrecht changes fall to Justice Minister Stefanie Hubig and no new law has been enacted.