In a move to address the pressing issue of affordable housing, the German Social Association (SoVD) has welcomed the government’s plan to extend the protection of rent-to-own apartments until 2030. The organization’s chair, Michaela Engelmeier, praised the move, stating that it would prevent the common practice of investors buying up rent-controlled apartments in city centers and then evicting long-term tenants.
The planned law, known as the “Bau-Turbo” aims to simplify the construction of new housing by allowing local authorities to deviate from urban planning regulations in certain cases. The SoVD also commends the government’s decision to introduce additional measures to promote the construction of new homes, which could make the process more affordable.
However, the real estate industry has expressed a more reserved view, with the Central Real Estate Committee’s head, Aygül Özkan, stating that while the “Bau-Turbo” is a step in the right direction, it alone will not be enough to bring about a significant change in the housing market. Özkan called for additional measures, including a review of the KfW’s funding programs, a reduction in building standards and a cut in the property transfer tax.
Bundesfinanzminister Lars Klingbeil, the German finance minister, has also weighed in, describing the planned law as “very important” and stating that it will enable the construction of more and faster-built homes, addressing the shortage of affordable housing. The minister emphasized the need to simplify the construction process, pointing out that young people can no longer afford to buy their own homes and that finding an affordable apartment is a significant challenge for many.
As the “Bau-Turbo” is set to be discussed in the cabinet, the government is expected to take a more active role in promoting the construction of new housing, with the finance minister stating that the government will increase its investments in the sector. The law’s passage is seen as a crucial step in addressing the pressing issue of affordable housing in Germany.