Rent cap in Saxony: extension until 2027 – what does that mean?

Rent cap in Saxony: extension until 2027 – what does that mean?

In the Saxon state capital, rents have recently become very popular again, and the government has responded to this: an extension of the rent cap for the cities of Leipzig and Dresden until the summer of 2027 is planned. Infrastructure Minister Regina Kraushaar (CDU) announced this in a podcast. How Saxon reports, the discussion highlights the worrying developments in the housing market that are leaving worried tenants in both cities.

The rent cap, which currently applies until the end of 2025, limits the rent for new rental agreements to a maximum of 10% above the local comparative rent. This regulation is intended to create a fair balance between the interests of tenants and landlords. Kraushaar described the current housing market in Dresden and Leipzig as “tense” and made it clear that the rent cap is only a temporary solution, while the construction of new apartments remains urgently necessary. A corresponding report should analyze the market situation until the summer of 2026 before further decisions are made daily news informed.

Tenants worry about their rights

In the podcast “Theme in Saxony”, Anke Matejka from the German Tenants’ Association of Saxony expressed her position on the planned extension: She considers this to be necessary, but is also critical of the time limit until June 2027. “The demand for affordable housing is increasing faster than the supply,” she emphasized. Many residents in these cities are also reluctant to take action against excessive rents, which represents an additional burden.

Matejka is therefore calling for stronger sanctions against owners who do not adhere to the regulations in order to finally create fair conditions for tenants. Alexander Müller from the Association of the Housing and Real Estate Industry, however, expressed concerns about additional administrative burdens that would affect the wrong people. This makes the idea of ​​a relaxed housing market a distant prospect.

The path to housing construction

However, both experts agree on the need to accelerate housing construction. Müller called for bureaucratic obstacles to be reduced and referred to the “Bau-Turbo” law, which is currently not having any effect. Matejka also calls for more affordable housing, including outside of social housing. The current situation requires strong joint action so that a roof over everyone's heads can be secured in the future.

The discussion about the rent cap shows once again that there is an urgent need for action to relieve the strained housing market in Saxony. It remains to be hoped that the planned measures and analyzes will soon deliver the desired results before rents continue to skyrocket.