The Mietpreisbremse, literally translated as “rent brake,” is a regulatory measure in Germany designed to curb rapid rent increases in areas with tight housing markets.
What is “Mietpreisbremse”?
The Mietpreisbremse is a law that limits the amount by which rent can be increased upon new tenancy agreements in designated areas with an “angespannter Wohnungsmarkt” (tight housing market). This measure aims to protect tenants from exorbitant rent hikes and maintain affordable housing in cities where the demand for rental properties significantly exceeds supply[1][2][3][4].
More information about “Mietpreisbremse”
Introduced in June 2015, the Mietpreisbremse stipulates that new rental contracts cannot exceed the local comparative rent (“ortsübliche Vergleichsmiete”) by more than 10%. There are exceptions, such as for new buildings completed after October 1, 2014, and extensively modernized apartments. The effectiveness of the Mietpreisbremse is debated, with studies showing a moderate effect on rent control, reducing rents by approximately 2.5% to 4% in regulated areas[1][2][5][6].
Related to “Mietpreisbremse”
Here are some additional terms that are related to Mietpreisbremse:
- Ortsübliche Vergleichsmiete: The local comparative rent used as a benchmark for setting rental prices within the Mietpreisbremse framework.
- Neubau: Refers to new buildings exempt from the Mietpreisbremse if they were first occupied after October 1, 2014.
- Modernisierung: Modernization work on an apartment can lead to an exemption from the Mietpreisbremse under certain conditions.
- Mietspiegel: A rent index that reflects the typical local rents and is often used to determine the local comparative rent.
The Mietpreisbremse is a significant aspect of Germany’s housing policy, particularly in urban areas with high demand for rental properties. It reflects the ongoing efforts to balance the interests of tenants seeking affordable housing with the market dynamics of rental property supply and demand[1][2][3][4].