The new building attracts more: rental price brake shows, according to the DIW study, moderate effect

Rent control has mitigated the rent explosion in the three years since its introduction, according to a study, easily. Accordingly, the increase in Rents is slowing down, where the Rent control applies. However, the effect is only of the order of 2 to 4 percent, as the study’s author, Claus Michelsen from the German Institute for economic research (DIW) said. Without the rental stock would brake to rent in popular residential areas, therefore, 2 to 4 percent higher.

At the same time, the price of led brake according to the DIW, the Rent for new buildings, which are excluded from the scheme, stronger than before. Average earners can afford according to another study, to rent a new-build apartments. In many cities, you would have to spend more than 27 percent of their net income for rent, the results of the data evaluation of the real estate market specialists Empirica on behalf of the ARD-magazine “Panorama”. A value of about 27 per cent, applies to experts as problematic, since only relatively little money for the other life remains.

DIW expert Michelsen said, at the same time it is worth now but also to invest in new buildings. In municipalities with Rent control have positive effects on the number of new, for the construction of approved dwellings detect.

effectiveness remains controversial

The rental fee was introduced, brake is in June 2015, the rapidly rising Rents to contain popular residential areas. Your core is that the rent must not, in the case of new leases more than 10 percent above the so-called local comparative rent. There are exceptions in the case of new buildings, renovations, or if the rent of the previous tenant was already higher. Tenant associations criticise that many landlords keep to the regulation. Also, local associations doubt the effect.

Minister of justice Katarina Barley (SPD), however, showed themselves satisfied with the effect. At the same time, they emphasized, however, that Rent control alone could not cure the market. “The Situation in the cities is still tense,” she said. Therefore, the rent should not be extended brake only beyond 2020. In addition, more new construction and more social housing was needed. In the spring, Barley will present a draft for the extension of the price brake.

in addition, the quality of the Rent index is to be improved by the legal minimum requirements. Rent prices show the customary comparative rent, so they made “equality of Arms” between landlords and tenants, said Barley.