“Inaction cannot be explained”
SPD politicians attack Buschmann over rents
February 14, 2024, 10:42 a.m
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Two deputy chairmen of the SPD parliamentary group criticize FDP Justice Minister Buschmann in clear words. They accuse him of inaction and cite the planned tenancy law reform, of which little has been seen so far. The outlook for tenants in Germany remains bleak.
SPD politicians have accused Federal Justice Minister Marco Buschmann of inaction with regard to coalition agreements on tenant protection. Buschmann is “letting tenants down,” says a letter from the two deputy parliamentary group leaders of the Social Democrats, Verena Hubertz and Dirk Wiese, from which the “Rheinische Post” quoted. “Your inaction is neither explainable nor understandable given the precarious situation on the German rental market.”
The letter goes on to say that Buschmann has “not yet initiated a measure” of the tenancy law reform agreed in the traffic light coalition agreement. Now time is of the essence because, among other things, the rent cap expires at the end of 2025. The tenancy law reform must go to parliament this quarter. “If Minister Buschmann does not deliver legislative proposals soon, he will be in breach of contract,” Hubertz told the Düsseldorfer Zeitung.
According to the coalition agreement, among other things, the capping limit, which sets the permissible rent increase within three years, should fall from 15 to eleven percent in areas with a tight housing market and the rent index observation period should be extended. However, the cap is considered a controversial instrument because it does not prevent rents from rising. In addition, the SPD is calling for further measures, for example to prevent the rent cap from being circumvented.
Rent prices are rising and less construction is taking place
Prices are still going through the roof, especially in major cities. In the second half of 2023, asking rents in Berlin, Hamburg, Munich, Cologne, Frankfurt, Düsseldorf, Stuttgart and Leipzig rose by an average of 8.2 percent compared to the same period last year, as an analysis by real estate specialist Jones Lang LaSalle (JLL) shows.
There is no prospect of improvement in sight as the housing construction industry is in a deep crisis and very little new living space is being added. According to a survey by the IFO Institute, the business climate in the industry recently fell from -56.9 to -59.0 points. This is the lowest value ever measured. Reasons include missing orders, cancellations and high interest rates.