Berlin rental increase ban takes effect

Berlin rental increase ban takes effect

Published at: 2020-02-24 12:56 | Author: CIJEurope.com
Berlin's ban on residential rent increases has gone into effect following a decision by the city council that has retroactive effective to June 2019. The measure looks certain to be taken fought in the courts, however, as the city's opposition party claims it's unconstitutional.

The law states that it won't be legal to raise rents on tenants beyond what they were paying on June 18, 2019, a date set in order to prevent landlords from raising rents during the time the was was being prepared. Depending on the age of the flat, units can be rented for between €3.92 and €9.8 per square meter. This wouldn't apply to newer units people moved into after 2014.

The city's ruling coalition claims the law will provide for tenants who have seen rents rise 90 percent over the last 10 years. The opposition is warning that the new rules will reduce investment into the city's housing stock at a time when 40,000 people are moving in each year. It also complains the law represents a serious restriction of ownership rights. The ban on rental increases is expected to effect 1.5 million apartments. The majority of Berliners rent rather than own their place.

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