German FAZ: Criticism of reports on rent controls010102

There are doubts about the figures in the latest report prepared by the Institute for Housing and Environment in Darmstadt. They do not currently accurately reflect the reality in the housing markets. This was also shown by the feedback from many municipalities on the expert report, said Ines Fröhlich (SPD), State Secretary in the Hessian Ministry of Economic Affairs on Friday. Against this background, the area’s background will be checked again on the basis of current statistical data. The data is crucial to the question of where the rent control will take effect. In Hesse, it currently applies in 49 cities and municipalities for which a tight housing market has been identified. The regulation expires on November 25th, but the Bundestag extended the legal basis in July until 2029. In order to take advantage of this opportunity, the state government commissioned the report from the Institute for Housing and Environment in Darmstadt, which was sent to the municipalities in the summer. Market in Frankfurt no longer tight? After that, the number of cities and municipalities with a tight housing market has increased. But municipalities also fell out. Frankfurt was surprisingly one of them in the first version of the report. This would have meant that the rent control there would have expired at the end of November. The evaluation to determine areas with tight housing markets is currently ongoing, reported Fröhlich. It should be completed over the course of next year. The general conditions have also changed rapidly over the past three years due to the effects of the war in Ukraine on housing construction and the housing market.

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Fröhlich confirmed the intention to initially extend the current tenant protection ordinance by one year. This secures instruments such as the rent cap, lowered capping limits and the extended notice period for existing areas. This would give tenants a secure and reliable foundation. The Greens in the state parliament see it differently. Uncertainties remain among tenants, in the industry and in the municipalities, said Mirjam Glanz, the parliamentary group’s spokeswoman for planning, building and living. Especially now, when more than 500 million euros are missing in social housing due to the state government’s policy in social housing, the rent cap is particularly important. More on the topic Show more With the one-year transitional regulation, Minister Kaweh Mansoori (SPD) is putting a plaster on an open breach. He forwarded the Darmstadt Institute’s report to the municipalities without checking it, only to have it taken away again shortly afterwards. It is questionable whether this approach is even legal. The process shows “chaos” in Mansoori’s leadership team, said Glanz. The Greens want to demand that all facts be put on the table “through parliamentary means”.
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