In Brief: Berlin Senate to vote on rent cap regulations

The compromise reached by Berlin’s Red-Red-Green coalition has been praised by the Berlin Tenants’ Association and sharply criticized by both the CDU and two dozen real estate companies, construction businesses, and other organizations in the housing industry.

Photo by Jonas Denil

 

The Berlin Senate is expected to vote today on rent cap regulations, known in German as the Mietendeckel.

At the end of last week, the Red-Red-Green coalition of Social Democrats, die Linke and the Green Party reached a compromise that there should be no rent increase for five years on apartments built before 2014. This affects approximately 1.5 million households in Berlin.

The regulation was praised by the Berlin Tenants’ Association but sharply criticized by two dozen real estate companies, construction businesses and other organizations in the housing industry in an open letter. In the letter, they say the rent cap will have severely negative effects on the economy and jeopardize investments in existing buildings.

Also against the rent cap is the CDU who say it violates the constitution and could slow down the construction of new apartments.

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In Saxony, negotiations have begun for a so-called Kenya coalition government (in German it’s also known as a “Black-Red-Green Coalition” to denote the associated colors of the parties involved – in this case the three colors that make up the Kenyan flag).

Though the CDU, Greens and SPD are divided on a number of issues, including energy and coal policies, there is also common ground. All three parties want to expand public transportation and hire more police officers, for example.

The coalition talks are expected to last well into November. The SPD and the Greens want their members to vote on a coalition agreement, while the CDU will hold a party conference to discuss the topic.

This news is brought to you in cooperation with Berliner Rundfunk.

 

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