BERLIN (dpa-AFX) - Although the traffic light coalition agreed in principle in April to extend the rent freeze beyond 2025, the amendment to the law is not making any progress. It is not his fault, the Federal Minister of Justice responsible for tenancy law, Marco Buschmann (FDP), told the German Press Agency. He says: "My draft for the rent freeze has long since been completed." The proposal has been with the Federal Chancellery for weeks. What is in the coalition agreement between the SPD, Greens and FDP and has been agreed with the Federal Chancellor will thus be implemented.

In tight housing markets, the rent freeze ensures that the rent may not be more than ten percent higher than the local comparative rent when a new rental agreement is concluded. The respective state government decides whether the rent freeze applies in certain areas. Buschmann has agreed to an extension until the end of 2029.

States should provide good reasons for applying the rent freeze

"It remains the case that the federal government does not prescribe the rent freeze," emphasizes Buschmann. If federal states wanted to apply the rent freeze, they would have to justify this. In future, somewhat stricter requirements should apply. The FDP politician says: "The Federal Constitutional Court has already ruled: The rent freeze interferes with the constitutionally protected property of homeowners." The longer the rent freeze is in place, the greater the impact of this encroachment. This must be taken into account in the new extension. "If I have my way, we can take the next steps in the legislative process immediately," he says. Because it would be desirable for the federal states to have legal certainty quickly.

Dirk Wiese, deputy leader of the SPD parliamentary group, announced in May that he would insist in the legislative process on the rent freeze "that we also make it effective". Specifically, he called for a change to the rule that it does not apply to new buildings that were first used from October 2014. This exception should be increased from 2014 to 2024, he told the Rheinische Post newspaper at the time.

The minister hinted that he was not prepared to make more far-reaching changes. This probably also includes considerations from the ranks of the Greens to lower the cap. This determines how quickly rents can rise on existing contracts. The current rule is that rents cannot be increased by more than 20 percent within three years, up to a maximum of the local comparative rent. In areas with a tight housing market, a maximum increase of 15 percent is permitted within three years, up to the local comparative rent./abc/DP/zb