• Germany's news in English
 

Rents could increase by 10 percent in 2013

Published: 25 Dec 2012 11:56 GMT+01:00

Millions should brace themselves for increased rents in 2013, warned Lukas Siebenkotten, director of the association.

"We must expect a rent increase of on average 10 percent in university towns and city centres," he said.

Current rental agreements can keep increases down to an average of two or three percent. But he said the recently decided reform of the rental laws would, "lead to a wave of law suits before the courts, which already have enough to do."

The reforms mean renters will have to accept up to three months of building work, including scaffolding in front of their windows, dust and noise, before they are able to reduce their payments. Only if the work lasts for more than three months can the rent be reduced as compensation.

If the renovations are to reduce energy use in the building, 11 percent of the costs can be added to rent each year. But Siebenkotten said there was no clear definition of what a energy-reducing renovation was - which he said could result in many legal fights.

Another change due to take effect in 2013 is a reduction in the rent increase cap which states can impose on popular areas. Until now they can limit the increase in rents to 20 percent over three years in attractive areas. But this will now be reduced to 15 percent over three years.

Siebenkotten said this kind of change was ignoring the main problem on the rental market. "Many households are already paying more than a third of their spending on their flats, including running costs," he said. Poorer households are spending more then 45 percent of their money on their flats, he said.

"Many people are being pushed out of the centres to the edges of town because of this," he said. "This will not be without grave social consequences. This is why new-build projects must always include a share of social housing flats, whose numbers are currently continually sinking."

DPA/The Local/hc

The Local (news@thelocal.de)

Your comments about this article

13:11 December 27, 2012 by grinners
As a renter in Frankfurt with issues. This is not a good sign for me/us.

It may tick us over to looking at either buying or building a place. With interest low, and rent increasing. It won't make sense to us for too much longer.
Today's headlines
Gay marriage: Germany still says 'No'
A gay couple in Stuttgart. Photo: DPA.

Gay marriage: Germany still says 'No'

Germany's cabinet on Wednesday approved a raft of draft measures to extend the rights of same-sex couples, but faced criticism for allowing only civil unions, not full gay marriage. READ  

Spectre of Greece haunts G7 Dresden meeting
German Finance Minister Wolfgang Schäuble welcomes his G7 colleagues to Dresden. Photo: DPA

Spectre of Greece haunts G7 Dresden meeting

Finance ministers and central bank governors of the Group of Seven wealthiest nations gathered in Dresden Thursday to discuss the global economy and tax evasion, but the Greek crisis was also high on everyone's minds. READ  

Cologne's giant bomb successfully defused
The bomb was burrowed deep in the ground. Photo: DPA

Cologne's giant bomb successfully defused

Bomb disposal teams have successfully made a 1,000-kilo explosive dropped during the Second World War safe, allowing 20,000 evacuated people to return to their homes. READ  

Cabinet revives plan to grab internet records
Anti-surveillance demonstrators in Berlin's Alexanderplatz in 2013. Photo: DPa

Cabinet revives plan to grab internet records

Germany's coalition government agreed on a draft law on Wednesday requiring telecoms companies to keep customers' data for up to ten weeks in case they are needed by security services, riling digital rights activists. READ  

The Local List
Germany's most idyllic swimming spots
Photo: Celsius / Wikimedia Commons.

Germany's most idyllic swimming spots

A European ranking released last week showed that Germany had one of the highest numbers of 'excellent' lakes and rivers for swimming, so The Local picked out some of the best places to take a dip in Germany this summer. READ  

Mediterranean migrant crisis
Germany to take most in refugee quota project
The German navy rescues refugees in the Mediterranean. Photo: DPA.

Germany to take most in refugee quota project

Germany found out on Wednesday it will have to take in the largest number of refugees under the European Commission's new quota system which aims to rehouse 60,000 people over the next two years. READ  

Foreign investors rate Germany Europe's best
A worker assembling motors at a Magdeburg factory. Photo: DPA

Foreign investors rate Germany Europe's best

Germany is behind only China and the USA as a destination for foreign investment, a study has shown. READ  

Merkel 'deceived' public on No-Spy treaty
Photo: DPA

Merkel 'deceived' public on No-Spy treaty

Chancellor Angela Merkel's government tricked the public into believing the USA was prepared to sign a so-called 'no-spy agreement' with Germany ahead of elections in 2013, a report in the Süddeutsche Zeitung claimed on Wednesday. READ  

Forbes: Merkel still world's mightiest woman
Photo: DPA

Forbes: Merkel still world's mightiest woman

Chancellor Angela Merkel tops the Forbes list of the world's most powerful women for the fifth straight year but Hillary Clinton is snapping at her heels, the magazine said on Tuesday. READ  

German public shop with renewed confidence
People throng the halls of the Milaneo shopping centre in Stuttgart. Photo: DPA

German public shop with renewed confidence

Consumer confidence in Germany is at its highest in 13.5 years, as the positive economic outlook and low inflation persuade consumers to open their purses, a poll found on Wednesday. READ  

RECEIVE OUR NEWSLETTER AND ALERTS
Travel
Why the train strike is bad for passengers and workers
National
Meet Germany's Eurovision hope
Business & Money
Is 2015 a new moment for jobsharing?
Features
How the LGBT rights movement was born in Germany
National
Why you don't make bomb jokes at the airport
National
Why Germany needs a little less tipple
National
Who Germans and Americans trust... and don't
Politics
What the UK election means for Germany
National
Why Germany is great for mums
Features
The Germans with GI dads
Five ways Germany falls short on gay rights
Travel
Giant tortoise found riding Munich rail
National
FCK CPS? A-OK with court
Politics
Opinion: Brexit's dangers for Germany
Features
Smart kids all want to work for BMW
National
Minister shows off top Denglisch
National
Germany's 'other genocide' in Africa
National
Arms firms get a 'must do better' mark on ethics
Sport
Bayern's anticlimactic 25th Bundesliga win
Politics
A Greek learning politics in Germany
Features
The battle of the "Gates of Berlin"
National
Germany's 'very poor' lobbying record
National
Germany's favourite baby names of 2014
Politics
Merkel's 15 years at the top of German politics
Travel
Lowest of the low: how woman exploited Germanwings crash
Features
Spice up asparagus season with The Local's serving suggestions
Sport
Football and the €30,000 firework
Technology
Why scientists oppose killer robots
National
'Cannibal cop' gets 8 years
National
Which city is Germany's worst for drivers?
Technology
Electrifying 'Ostalgia'
National
Cologne Cathedral returns from space
Pupils mourn lost classmates
National
Freed after 25 years on death row
Shutterstock
Sponsored Article
10 things you didn’t know about Zagreb (and why you should go)
Is your workload 'out of control'? You're not alone...
Sponsored Article
What expat parents should ask before choosing a school
Features
Paddy's Day, Berlin style
National
Why east Germans are happy to get it on on camera
National
Uplifting thoughts to get you through the last week of winter
National
What would you do with a 250-year-old pretzel?
National
Who wants the Olympics more - Hamburg or Berlin?
Features
Just why is the German flag Schwarz, Rot, Gold?
Business & Money
Getting German workers and bosses thinking positive
Latest news from The Local in Austria

More news from Austria at thelocal.at

Latest news from The Local in Switzerland

More news from Switzerland at thelocal.ch

Latest news from The Local in Denmark

More news from Denmark at thelocal.dk

Latest news from The Local in Spain

More news from Spain at thelocal.es

Latest news from The Local in France

More news from France at thelocal.fr

Latest news from The Local in Italy

More news from Italy at thelocal.it

Latest news from The Local in Norway

More news from Norway at thelocal.no

Latest news from The Local in Sweden

More news from Sweden at thelocal.se

6,693
jobs available
Toytown Germany
Germany's English-speaking crowd