Construction Minister wants to take action against rent gouging

Berlin. Federal Construction Minister Verena Hubertz (SPD) wants to take stronger action against so-called rent gouging and more strictly regulate indexed rents and furnished apartments. She told the newspapers of the Funke Media Group: "Of course, we need more housing supply through new construction, but we also need fair rules." Therefore, the extension of the rent control law until 2029, decided this summer, is insufficient.

Furnished apartments are exempt from the rent control law. Hubertz criticized the fact that this exemption is being exploited. "If someone puts an old couch in the corner and then charges 35 euros per square meter instead of 8 euros per square meter – and this happens in major cities – then that has nothing to do with reasonable surcharges," the minister said.

With index-linked leases, rents can be increased annually according to the value of the consumer price index published by the Federal Statistical Office. However, this type of lease does not include any adjustment to the local comparative rent. Hubertz sees this as a problem. "The energy price crisis showed how problematic it is when rents increase rapidly by double digits in a short period of time." The Minister for Construction explained that an expert commission on tenancy law has therefore been established to address these issues and propose solutions.

RND/dpa