Economic reforms in sight: what the rental price brake means for us!

Economic reforms in sight: what the rental price brake means for us!

Ballungsräumen, Deutschland - CDU, CSU and SPD presented an immediate program to strengthen the economy on May 29, 2025, but the concrete schedule of which is still unclear. In the middle of these announcements, Veronika Grimm's economy was critical of several decisions of the coalition summit, in particular to extend the rental price brake. Grimm described this decision as incomprehensible because it could potentially dampen investments in housing. Chancellor Friedrich Merz (CDU), on the other hand, emphasized the need to overcome the structural weakness of growth and to concentrate on the future.

As part of the political discussion about the rental price brake, the legal regulations are currently being discussed, which has ensured that the rent may be over the local comparison rent since its introduction in 2015. This is still a central concern to slow down the increase in living space rents in metropolitan areas. Dr. Stefanie Hubig, the Federal Minister of Justice and for Consumer Protection, spoke out for the extension of the rental price brake, since "living should not become a luxury good".

criticism and demands

Among other things,

Grimm criticized the decided reduction of the sales tax rate in the catering trade, the agrardiesel subsidy and the mother's pension. According to Grimm, these decisions are questionable and could not provide the required impulses for the economy. In addition, she called for the creation of a reform committee for pension and long -term care insurance. One suggestion was to pair the retirement age to life expectancy and to reintroduce the sustainability factor.

The Metall industrial union (IG Metall) also expressed the need for rapid measures to ensure positive impulses for people and companies. The Association of the Medium -sized economy (BVMW) also penetrates a quick implementation of the required reforms because many medium -sized companies are under pressure. The hopes are low without having to quickly arrive at the companies without concrete results of the coalition committee.

destinations of the rental price brake

  • protection for tenants who are seen as a question of justice.
  • Extension of the rental price brake in tense apartment markets by four years.
  • Introduction of fines for violations of the rental price brake.
  • Reform of the modernization levy to promote renovation investments and to ensure the affordability of rents.
  • regulation of index rents and short -term rentals to prevent possible abuse.
In addition, tax incentives for landlords who offer cheap rents and the implementation of an action plan against homelessness are provided. The deadline for the current rental price brake expires at the end of the year, and the extension is considered the first step to stabilize the housing market. The upcoming coalition agreement thus promises significant changes for both tenants and landlords in order to create a balance between tenant protection and investment incentives.

These challenges and perspectives for the housing market are now on the political agenda. The developments are observed closely by the public because they could have a significant impact on the quality of life of many people. The bundling of these measures could contribute to the stabilization of the city centers and the rental markets.

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