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.
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