Berlin protest against rising rents. Demotix/David von Blohn. All rights reserved.Back in the spring of 2014 Germans knew the central government intended to legislate on a cap on the housing rental market that appeared to be veering out of control. Many didn’t know what to make of it – proposals were too vague at the time. It sort of seemed a good idea to stop landlords charging whatever they fancied, indiscriminately. It did and it still does.
Having witnessed the disgraceful housing situation in London and Paris, authorities in Munich, Hamburg and other big German cities – where the cost of living is on the verge of segregating communities – gathered together to exchange their respective views on what needs to be done and duly advised Berlin.
What are the forces behind the new initiatives?
The government grand coalition between the Christian Democratic Union (CDU) and the Social Democratic Party (SPD) reached an agreement towards the end of last year on the much debated issue of property renting: the price premium must be capped when re-letting.
