Federal Minister of Justice Stefanie Hubig (SPD) has announced intentions to tighten regulations concerning the rent price brake. Speaking to the newspaper “Bild am Sonntag”, she stated that, alongside the Rent Law Commission, measures will be introduced to tackle rampant rent gouging.
The primary goal is to make the existing rent price brake much stricter for those who intentionally disregard its rules. Currently, the penalty for such violations is limited to merely forcing the repayment of the disallowed rent amount.
Addressing landlords who are considering selling their properties rather than renting them out, Hubig countered that people are struggling to afford housing, and she is determined to change this situation. She stressed that her focus is on the few bad actors, and not on genuinely ethical landlords. She noted that quantifying the number of ‘bad actors’ is difficult, as many citizens simply accept the current market situation without complaint.
Despite the need for state intervention, Hubig appealed to landlords to continue maintaining properties in the rental market. She argued that the urgent need for rental housing means that increasing supply will naturally help stabilize prices, thereby reducing the overall requirement for governmental regulation.
When asked about a definitive timetable for improvement, Hubig pointed to a slight dip in rental prices observed last year as a positive indicator. She expressed confidence that the housing market will continue to improve within the current legislative term, adding that the necessary laws are already prepared.