Renters in Germany could receive long-awaited relief as the ruling Social Democratic Party considers proposing a three-year freeze on rents.
Tenants across Europe’s largest economy have struggled against a deepening cost of living crisis which has seen rents surge to record levels.
Senior SDP lawmaker Verena Hubertz told Bild am Sonntag: “We need to create breathing room – we need a rent freeze for the next freeze.”
According to the German Federal Statistical Office, almost half of Germany’s 41 million households are living in rented accommodation, with just a fifth owning their own home.
Under existing legislation, rent increases were capped at 20% over three years and 15 years in areas deemed to have particularly tight housing markets.
But according to proposals seen by news agency Deutsche Press-Agentur, rents will be allowed to rise by 6% in cities with high demand, while a blanket freeze would be imposed across the rest of Germany, the Financial Times reports
The proposal has no doubt been prompted by soaring inflation and housing shortages exacerbated by the arrival of more than 1 million Ukrainian refugees.
Statistics show more than 15% of Germans are spending at least 40% of their income on rent, with 1.5 million spending more than half their pay on rents that don’t include utilities.
A far-cry from the UK
As the UK grapples with spiralling housing and energy costs, it’s perhaps no wonder tenants are calling for the implementation of rent freezes as inflation pushes households to the brink.
Research from the Guardian published in December last year reveals the scale of the current crisis, with asking rents on new listings up by almost a third since 2019.
Meanwhile, members of the London Renters’ Union reported average annual rent increases of almost £3,400, with one union member forced out of their property after being charged an extra £8,000 a year.
Elizabeth Williams from the LRU, said: “Decades of government decisions have prioritised profits for landlords and investors above the safety and security of tenants.
“Measures like an end to no-fault evictions and a rent freeze can bring us closer to a housing system that prioritises human need over the profits of a tiny few.”
Advocates of rent freezes point to Scotland where Nicola Sturgeon introduced a cap on in-tenancy rent rises until March.
Mayor of London Sadiq Khan has also backed demands for freezes, calling on ministers to implement a two-year cap on private rents in the capital.
He told an emergency summit in November: “The fact that 40 per cent of Londoners think that they will struggle to make their rent payments in the next six months shows the scale of the housing crisis in London.
“London’s private renters are facing a triple whammy with rising rents, bills, and the cost of household essentials putting a major strain on their finances. Ministers must take this crisis seriously and act now.”
Related: Average rent in London set to soar to £2,700 a month