German Government Extends Rent Control Until 2028 Amid Criticism

The decision to prolong the rent cap faces opposition within the coalition and skepticism about its effectiveness in addressing housing shortages.

The coalition government has agreed to extend the rent control measure, known as the Mietpreisbremse, until the end of 2028, despite initial plans to extend it to 2029.
Critics argue that the rent control measure has not effectively curbed rising rents or addressed the underlying housing shortage.
The measure limits rent increases for new leases to 10% above the local average, but exceptions and loopholes have reduced its impact.
The extension has sparked internal conflict within the coalition, with some parties pushing for stricter regulations and others concerned about impacts on housing construction.
The decision was part of broader negotiations involving unrelated policy areas, highlighting the complex dynamics within the coalition government.