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Building minister calls for more housing

The Local · 8 Jul 2012, 12:30

Published: 08 Jul 2012 12:30 GMT+02:00

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Peter Ramsauer, German minister for transport, building, and urban affairs, told the Welt am Sonntag newspaper, “We need more public housing.”

Most of the responsibility for the construction of public housing lies with the individual states, but the federal government contributes €518 million per year.

Ramsauer, of the Christian Social Union (CSU), said that the states of North Rhine-Westphalia, Hamburg and Bavaria have largely taken advantage of the available funds, while Berlin, Brandenburg, and Mecklenburg-Pomerania have not.

“The states handle public housing in different ways, and there is definitely some leeway,” he said.

A study by the Pestel-Institute in Hannover has predicted that an extra 400,000 homes will be needed in Germany by 2017. Currently, there is a lack of 100,000 residences.

“The good news is that the climate for new investors has noticeably improved,” Ramsauer told the newspaper. “Because the returns on investment were so small for many years, too little was invested for a long time.”

Opposition parties, meanwhile, are calling on the federal government to place legal limits on rising rents.

Story continues below…

“The lawmakers should cut the rent cap limits in half,” Florian Pronold, of the Social Democratic Party (SPD), told Die Welt. Current limits allow rents to rise 20 percent within three years, and Pronold would like to see that reduced to 10 percent.

The Local/mbw

The Local (news@thelocal.de)

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Your comments about this article

17:48 July 8, 2012 by IchBinKönig
Due to supply and demand, private citizens are benefiting from their real estate investments. This can't stand! The Government should be the one benefiting. Its time to build public housing in cities where a greater SDP influence is required.

Like my friend here;


He knows the benefits of a permanent, poor and comfortable voter base.
19:18 July 8, 2012 by AClassicRed
I only know about Berlin, not the other cities mentioned, but there seems to be not so much of a shortage of housing, but it is very difficult to obtain a lease for housing or it is made too expensive for those who are non-German, yet via workers of some kind with income and even references.

There are measures, some of them understandable of course, but which make it almost impossible for the majority of people who didn't grow up in Germany, aren't German or who are not allowed to work in a way to obtain housing.

If there wasn't enough housing then there literally wouldn't be several thousand advertisements for flats to let. They just disqualify the majority of those trying to find a place, or as the article mentions the rents that are now being charged are over-inflated for several reasons, including gentrification.
19:55 July 8, 2012 by Englishted

"who are not allowed to work in a way to obtain housing."

What does that mean ?,does it mean the wages are too low ,or that you are not allowed to work if not why not ?.

Would you rent to somebody who could not prove their income or provide references ?.
21:24 July 8, 2012 by jg.
A quick search of ImmobilienScout turned up over 200 flats in Mecklenburg-Vorpommern for sale at 50K or less. Why would they need to waste public money building new public housing when there is so much cheap property sitting empty?
23:58 July 8, 2012 by bobmarchiano
With the amount of money needed to buy a flat it would not matter if there were 500

flats for sale. With wages being so low for many it would take many years just to

save that amount of money. People need affordable housing now and they need a

break from 3 months security plus a months rent.

Most have a hard time moving when they need to tie up 6 months security, then have to

wait up to six months for landlords to return there security
06:28 July 9, 2012 by wires
Speculation in housing contradicts the basic human need of having a roof over one's head. Housing is part of a country's infrastructure, such as roads. When rents increase dramatically faster than wages within established neighborhoods, there's a problem. It makes especially no sense when families are uprooted or when productive wage earners must pay a high percentage of what they earn to unproductive housing owners.
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