• Germany's news in English
 
app_header_v3

Rents could increase by 10 percent in 2013

The Local · 25 Dec 2012, 11:56

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."

Story continues below…

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
This Week in History
75 years since one of Holocaust's worst massacres
Photo: DPA

On Thursday, German president Joachim Gauck spoke in Kiev 75 years after the Nazis slaughtered 33,771 Jews during one of the worst single massacres of the Holocaust.

Six things you need to know about troubled Deutsche Bank

Shares in Deutsche bank plunged on Friday morning, dragging down other European banks and markets worldwide. Here are six things to know about Germany's biggest lender.

Deutsche Bahn jacks up prices for first time in 3 years
Photo: DPA

Germany's main rail provider, the state-owned Deutsche Bahn (DB), announced on Friday that it will raise prices on long-distance train travel.

Baby found alive in suitcase with skeleton in Hanover
File photo: DPA.

A baby has been found alive, along with the skeleton of another infant inside of a suitcase in Hanover, police reported on Friday.

Morocco to speed up repatriation of illegal migrants
Photo: DPA

Morocco has agreed to streamline the procedures for the repatriation of citizens living illegally in Germany, the royal court said late on Thursday.

890,000 refugees arrived in Germany last year - not 1.1m
Photo: DPA

Previous reports had suggested that around 1.1 million people entered Germany to seek asylum last year. But now the German government has confirmed the number was actually lower.

Racist attacks cast cloud over Dresden Unity Day planning
A police vehicle in Dresden. Photo: DPA.

As Dresden prepares to host Germany’s national Unity Day celebrations on Monday, the capital of the eastern state of Saxony is upping security after a mosque was targeted by a homemade bomb.

Sinking Deutsche Bank stock sends shock across Europe
Photo: DPA

Shares in Germany's biggest lender Deutsche Bank plummeted on the Frankfurt stock market on Friday, dragging other European banks and global markets down with it, after reports some customers were pulling money out.

The Local List
10 things you never knew about German reunification
Reunification celebrations in Hanover in 2014. Photo: DPA

With German Unity Day (October 3rd) happening on Monday, Germans are looking forward to a three-day weekend. But did you know these facts about reunification and German Unity Day?

Munich pharmacy’s nighttime porno show draws crowd
Photo: DPA

When a police patrol in Munich's Sendlinger Tor area noticed a crowd gathered outside a pharmacy window they went to investigate. But the onlookers weren't interested in a new line of flu medicine.

Sponsored Article
The Inner Circle: the secret to dating in Berlin
Germany's 10 most Instagram-able places
Sponsored Article
Why Jordan is the ‘Different’ East
Lifestyle
15 pics that prove Germany is absolutely enchanting in autumn
Lifestyle
10 German films you have to watch before you die
Lifestyle
6 things about Munich that’ll stay with you forever
Sponsored Article
Retiring abroad: ensuring your health is covered
Lifestyle
10 pieces of German slang you'll never learn in class
National
Seven great reasons to stay in Germany this September
National
Ouch! Naked swimmer hospitalized after angler hooks his penis
National
Six reasons why Berlin is now known as 'the failed city'
Sponsored Article
Life in Jordan: 'Undiscovered treasure'
National
15 tell-tale signs you’ll never quite master German
Culture
7 American habits that make Germans very, very uncomfortable
Sponsored Article
The Inner Circle: the secret to dating in Berlin
Rhineland
Story of a fugitive cow who outwitted police for weeks before capture
Culture
Eleven famous Germans with surnames that'll make your sides split
Lifestyle
The best ways to get a visa as an American in Germany
Gallery
Germany's 17 Olympic gold medals in pictures
14 facts you never knew about the Brandenburg Gate
Society
Ten times Germans proved they really, really love beer
National
Six things you need to know when moving to Germany
Travel
These 10 little-known German towns are a must see
International
German scientists prove birds can sleep while flying
Technology
London v. Berlin: Which is better for startups?
Lifestyle
13 mortifying mistakes German learners always make
6,751
jobs available
Toytown Germany
Germany's English-speaking crowd