• Germany's news in English

Rents could increase by 10 percent in 2013

The Local · 25 Dec 2012, 11:56

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

Facebook Twitter Google+ reddit

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."

Story continues below…

DPA/The Local/hc

The Local (news@thelocal.de)

Facebook Twitter Google+ reddit

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
Outrage over ruling on 'brutal' gang rape of teen girl
The now convicted suspects, sitting in court in Hamburg. Photo: DPA.

A 14-year-old girl was gang-raped and left partially clothed and unconscious in freezing temperatures. Now prosecutors are appealing the sentences for the young men found guilty, most of whom will not set foot in jail.

Dozens of Turkish diplomats apply for asylum in Germany
Demonstrators holding a giant Turkish flag protest against the attempted coup in Istanbul in July. Photo: DPA.

Since the failed putsch attempt in Turkey in July, Germany has received 35 asylum applications from people with Turkish diplomatic passports, the Interior Ministry confirmed on Wednesday.

Hertha Berlin fan club criticised for 'anti-gay banner'
Hertha BSC beat FC Cologne 2-1. Photo: DPA

A 50 metre fan banner apparently mocking the idea of gay adoption has overshadowed Hertha BSC's win in the Bundesliga.

Germany stalls Chinese takeover of tech firm Aixtron
Aixtron headquarters in Herzogenrath. Photo: DPA

The German government on Monday said it had withdrawn approval for a Chinese firm to acquire Aixtron, a supplier to the semiconductor industry, amid growing unease over Chinese investment in German companies.

Politicians call for tough sentences for 'killer clowns'
File photo: DPA.

Now that the so-called 'killer clown' craze has spread from the US to Germany, elected officials are drawing a hard line against such "pranks", with some threatening offenders with jail time of up to a year.

Nearly one in ten Germans are severely disabled
Photo: DPA

New figures reveal that 9.3 percent of the German population last year were considered severely disabled.

The Local List
Germany's top 10 most surreal sites to visit
The Upside-Down House, in Mecklenburg–Western Pomerania. Photo: Olaf Meister / Wikimedia Commons

From upside-down houses on Baltic islands to a fairy-tale castle near the Austrian border, Germany is a treasure trove of the extraordinary.

Bavarian critics back Merkel for Chancellor again
Photo: DPA

The Christian Social Union (CSU) have long delayed backing Angela Merkel as their candidate for Chancellor in next year's general election. But now key leaders are supporting her publicly.

Four taken to hospital after hotel toilet bursts into flames
File photo: DPA.

Four guests at a Nuremberg hotel were taken to hospital due to smoke inhalation early Monday morning after a toilet there burst into flames.

Creepy clown scare spreads to Germany
Two of the clowns were apparently equipped with chainsaws. Photo: Pedro Pardo / AFP file picture

Police said Friday five incidents involving so-called scary clowns had occurred in two north German towns, including one assailant who hit a man with a baseball bat, amid fears that Halloween could spark a rash of similar attacks.

10 things you never knew about socialist East Germany
Sponsored Article
Last chance to vote absentee in the US elections
How Germans fell in love with America's favourite squash
How I ditched London for Berlin and became a published author
12 clever German idioms that'll make you sound like a pro
23 fascinating facts you never knew about Berlin
9 unmissable events to check out in Germany this October
10 things you never knew about German reunification
10 things you're sure to notice after an Oktoberfest visit
Germany's 10 most Instagram-able places
15 pics that prove Germany is absolutely enchanting in autumn
10 German films you have to watch before you die
6 things about Munich that’ll stay with you forever
10 pieces of German slang you'll never learn in class
Ouch! Naked swimmer hospitalized after angler hooks his penis
Six reasons why Berlin is now known as 'the failed city'
15 tell-tale signs you’ll never quite master German
7 American habits that make Germans very, very uncomfortable
Story of a fugitive cow who outwitted police for weeks before capture
Eleven famous Germans with surnames that'll make your sides split
The best ways to get a visa as an American in Germany
jobs available
Toytown Germany
Germany's English-speaking crowd