• Germany's news in English
 
app_header_v3

Rental cap for busy areas draws closer

DPA/The Local · 20 Mar 2014, 10:48

Published: 20 Mar 2014 10:48 GMT+01:00

Average rent has risen by more than 10 percent since 2008 across Germany – and by much more than that in some urban areas. The capping procedure was included in the coalition agreement last year between the conservative Christian Democratic Union and Social Democrats.

Around 4.2 million properties will likely be affected, but there will be no break for the first tenant of a newly built or if a residence has been extensively modernised, according to the draft law.

The idea that a new renter automatically has to pay a letting agent will also largely be scrapped, said Justice Minister Heiko Maas. If an agent breaks these new laws they could face a fine.

Landlords will also no longer be allowed to load letting agent costs onto the tenant in rent. And a contract with a letting agent will only become valid if a flat hunter gives the agent a written contract, and the agent has specifically found a property for the client.

The aim is to take the strain off renters, who will also be able to request information from their landlords about how their rent is calculated.

Story continues below…

The ministry estimated that in total, the measures would save renters €854 million a year.

READ MORE: Should rents in cities be capped?

For more news from Germany, join us on Facebook and Twitter.

DPA/The Local (news@thelocal.de)

Your comments about this article

Today's headlines
Why Germans get wholly wasted on Ascension Day
Young men in Schleswig-Holstein go for their annual chug and stroll on Ascension Day - which is also Father's Day. Photo: DPA.

In Germany, Himmelfahrt is not just about honouring Jesus' ascent into heaven - it's also Father's Day, and sees a tripling of alcohol-related accidents. The Local explains why.

Moving city is no excuse to quit the gym: court
Breaking out of a gym contract in Germany takes more than upper body strength. Photo: DPA

Nomadic fitness fanatics across Germany suffered a blow on Wednesday, after the country's top court ruled that moving to a different city is no grounds for breaking a contract with your gym.

Germany's six most beloved shopping streets
The Krügerpassage on Westenhellweg, Dortmund. Photo: Wikipedia

Where do Germans most love to spend their cash? The results of a new survey show the hottest shopping miles in the Bundesrepublik - and Berlin barely features.

‘Innovative’ Germans finally discover Victorian drying rack
The humble drying rack. Screenshot: Youtube

No one beats the Germans when it comes to invention and innovation - or so the cliché goes. But a Munich startup’s new project shows they’re not always first to the party.

Towns hire 'rubbish scouts' to keep summer BBQs tidy
Photo: DPA

Towns and cities across Germany are tooling up for the summer, with many hiring extra staff to pounce on people sullying parks with barbecue rubbish.

Video
Tourist terror as iconic Berlin balloon thrashed by winds
The Die Welt balloon swaying in the wind. Photo: DPA

Sightseers in the German capital feared for their lives on Tuesday afternoon when the "Die Welt" balloon swayed out of control in strong winds.

Erdogan poem affair
Merkel ‘filleted me and served me to Erdogan for tea’
Jan Böhmermann. Photo: DPA

The German comedian behind a “smear poem” which outraged Turkey and unleashed hot-tempered debate on freedom of speech across Europe has spoken for the first time since the affair - and he had sharp words for the Chancellor.

'Sharia police' members to face trial in Düsseldorf
Sven Lau. Photo: DPA

The 'Sharia police', a group that patrolled a western German town chastising people for not adhering to Islamic law, are to go on trial.

Germany set to legalise medicinal cannabis
Photo: DPA

Germany is to legalize cannabis for medicinal purposes early next year, the health minister said on Tuesday.

Germany's first Isis war crimes trial starts in Frankfurt
Photo: DPA

A German jihadist suspect went on trial Tuesday for war crimes in Syria after allegedly posing for photographs holding the severed heads of two victims of the conflict.

Sponsored Article
What's the best way for expats to transfer money abroad?
Culture
The 6 German words you need to know for spring
Sponsored Article
Becoming an expat: where to start
Culture
6 weird and wonderful ways Germans celebrate May 1st
Gallery
Feast your eyes on Germany in springtime bloom
Sponsored Article
How to launch your international career
National
4/20: Five things to know about weed in Germany
Berlin
Police break up hipster swarm at vegan restaurant opening
Politics
Merkel allows Erdogan case against German satirist to go ahead
Travel
7 of Germany's most jaw-dropping national parks
Hamburg
Gay penguins move to Hamburg to settle down
Business & Money
See-through €5 coin has collectors lining up
Health
Vegan hemp powder recalled over fear toddlers getting high
International
6 ways Mexico and Germany are secretly the best of friends
Munich
Drunk man falls onto tracks, 3 trains pass before anyone notices
Culture
The 7 most German things that happened at the 'German Grammys'
National
Could Germany ban diesel cars from city centres?
Travel
Eight things you never knew about the German Autobahn
Society
Police force naked driver to trek to brothel on foot
National
Bavarian town finally strips Hitler of honorary citizenship
Society
Brandenburg faces wrath of Flying Spaghetti Monster
International
German retiree 'fed to dog' by Russian wife in Mallorca
National
Ordinary Germans toast love online in face of Brussels bombings
National
Germany calls for "strength in unity" after Brussels bombings
7,819
jobs available
Toytown Germany
Germany's English-speaking crowd