Owners’ Association Warns Housing Market to Weaken from Hubig Reform

Owners’ Association Warns Housing Market to Weaken from Hubig Reform

The owners’ association Haus und Grund warns that the reform proposals of Justice Minister Stefanie Hubig (SPD) could weaken the housing market.
President Kai Warnecke explained to newspapers of the Funke Media Group that only a very small number of tenants will ever benefit from the changes. He added that the proposals send a further signal to private landlords: do not invest, do not modernise – and that this will make affordable housing unavailable in the future.

Warnecke described the draft law as well‑intentioned in many respects but poorly executed. He criticised the calculation of the furnishing allowance based on an individual depreciation rate as impractical and controversial. According to Hubig’s plan, the allowance would be considered appropriate only if it does not exceed five per‑cent of the net cold rent for fully furnished accommodation. Warnecke called the flat five‑per‑cent limit for a fully rented unit a “bad joke”.

He also found the safeguard period for rent arrears impractical, arguing that the BMJV failed to craft a rule understandable to private landlords.

Finally, Warnecke said that the proposed cap on index‑based rents for tenants is symbolic politics, because it applies only in rare cases where high inflation, an index‑rent agreement, and a landlord’s declaration coincide. For landlords excluded from index rents when performing energy upgrades, the calculation basis will be absent, effectively barring such projects – a problem amplified by the fact that the cost of energy upgrades has risen far faster than the consumer price index.