The cabinet’s scheduled passage of the Building Modernization Act (GMG), initially planned for this Wednesday, has been delayed by at least a week, according to reports citing coalition circles.
The disagreement revolves around the respective positions of Federal Minister for Economic Affairs, Katherina Reiche (CDU), and Federal Minister for Building, Verena Hubertz (SPD). Sources indicate that Hubertz is reportedly blocking the approval as she aims to improve tenant protection. According to the report, the Minister is concerned that tenants might face excessively high heating costs if new fossil fuel heating systems are installed.
Calculations by the Fraunhofer Institute for System and Innovation Research (ISI) at the beginning of April projected the impact of the proposed reform. These figures suggest that if a gas heating system is installed instead of a heat pump in 2025, the additional monthly cost for tenants would amount to 55 euros. By 2045, this supplementary monthly expense is expected to rise to 272 euros, accumulating to 18,580 euros over a 19-year period.
Furthermore, the newspaper states that Hubertz intends to push for restrictions on landlords’ ability to pass on the costs of installing new heating systems and implementing energy efficiency upgrades to tenants. Currently, landlords are permitted to increase cold rents within six years by up to three euros per square meter, with a maximum of two euros per square meter allowed for lower-rent properties.
Conversely, Reiche reportedly opposes any further changes. She fears that otherwise, many landlords might be forced to bear the majority of the costs themselves, leading them to forgo necessary renovations.
Sources reported that intensive negotiations are currently underway to resolve this conflict, with an agreement expected by the end of the week.