The government of North Rhine-Westphalia has responded to the tense situation on the housing market, with plans to significantly expand the rent brake. This is evident from a draft for the rewording of the rent protection ordinance, reported by the “Rheinische Post” (Wednesday edition).
Currently, the rent brake applies in 18 municipalities. However, in Bad Honnef, it will no longer be applicable, and 40 new cities will be added, including Aachen, Bielefeld, Dortmund, Krefeld, Leverkusen, Neuss, and Paderborn.
The basis for the decision is a report by the Berlin-based consulting firm Regio Kontext from May 2024, which examines the level and dynamics of market rents, building land prices, the calculated rent burden, and the proportion of people receiving housing benefits.
Although the current situation is still unclear, as the federal government has yet to extend the necessary legal basis beyond December 31, the North Rhine-Westphalian Minister of Construction, Ina Scharrenbach (CDU), has stated that “further waiting for federal decisions is not indicated.”
Opposition politicians have criticized the move. FDP state chairman Henning Höne described it as a “massive attack on private property”: “With alarming self-assurance, CDU Minister Ina Scharrenbach is intervening in private property ownership.” Höne characterized the rent brake as a “new construction brake” and spoke of “planned economy interventions” that would deter investors and further constrict the housing supply.
The SPD also criticized the move, although with a different focus. SPD state chairman and deputy faction leader Sarah Philipp pointed out that the minister had previously “always taken a stance with both feet” against effective protection for tenants.
Scharrenbach was forced to act by the dramatic development of rents, the report had not allowed for further blockage, Philipp told the “Rheinische Post”. “And yet: Compared to Bavaria, where the protection provisions apply in 118 municipalities, NRW is lagging behind in tenant protection. It once again confirms that Minister Scharrenbach is a landlord’s minister. She is a problem for over 10 million tenants in NRW.”
The following municipalities will now benefit from the rent brake: Aachen, Bad Lippspringe, Bergheim, Bielefeld, Brühl, Dormagen, Dortmund, Düren, Elsdorf, Erftstadt, Erkrath, Frechen, Greven, Grevenbroich, Harsewinkel, Hilden, Hürth, Kaarst, Kempen, Kerpen, Korschenbroich, Krefeld, Langenfeld, Leverkusen, Lohmar, Lotte, Meckenheim, Meerbusch, Monheim, Neuss, Ostbevern, Overath, Paderborn, Ratingen, Rheinbach, Rommerskirchen, Sankt Augustin, Swisstal, Troisdorf, and Weilerswist.
In these cities, the brake will continue to apply: Alfter, Bergisch Gladbach, Bonn, Bornheim, Düsseldorf, Hennef, Köln, Königswinter, Leichlingen, Münster, Niederkassel, Pulheim, Rösrath, Siegburg, Telgte, Wachtberg, and Wesseling.