Berlin’s district court rules in favour of rental price cap

Berlin’s district court rules in favour of rental price cap
Photo: DPA
Berlin's controversial rental price freeze law has had a major win, with a Berlin district court ruling that the law is consistent with the constitution.

While the case is not yet legally binding as it is subject to appeal, the decision could have wide-ranging consequences for the controversial rent cap (Mietendeckel). 

Despite receiving the support of Berlin's state parliament, the law is opposed by Germany's federal government who argue that regulating housing costs is a federal rather than a state matter.

'We're setting a clear stop sign': Berlin passes five-year rent freeze law 

However Berlin's Tages-Spiegel newspaper reported on Saturday that the Berlin Landgericht (Regional Court) found the rule to be consistent with the German constitution. 

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The court did however rule that the law’s retrospective application – the law was passed in February but was drafted to apply from June 2019 – was illegal.

Therefore, while the freeze on rent prices is valid, it will only be put in place from March 2020. 
 
This is primarily of importance for calculating back payments for landlords that have charged too much. 
 
For more information on the law, please click here for a rundown
 

 

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