Victory for German Tenants: Parliament Passes Law to Cap Exorbitant Rent Rises

The German Lower House of Parliament recently passed a law to limit rent increases to Metropolitan areas to roughly 10% above local averages for incoming tenants, in order to prevent tenants from being priced out of the rental market. Since 2007, rents have shot up by as much as 30-40% in major urban centres. The exorbitant rent increases have a large impact on German households, roughly half of whom rent, and where home-ownership stands at 46% (second lowest in Europe).  

 

“It’s a good day for the German tenant,” said Justice Minister HeikoMass.

 

Around 5 million properties will be affected by the new rule, though there are exemptions.

 

For the full article, please visit:

http://uk.reuters.com/article/2015/03/05/germany-realestate-rents-idUKL5N0W72H520150305