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In the case of new rentals, owners require more than five percent more than last year. And even then there was a high surcharge on the rents.

Housing market: rents rise significantly

In the case of new rentals, owners require more than five percent more than last year. And even then there was a high surcharge on the rents.

Housing market: rents rise significantly

The increase in rent in many parts of Germany continues unabated. Owners demand strong surcharges in case of Rerentals: The rents recently climbed more than twice as fast as general inflation on federal average. This is shown by a response from Federal Ministry responsible for construction to a question by Green MEP Christian Kühn.

Accordingly, rents, which owners demand, increased by 5.3 percent in second quarter of 2018 compared to same period last year, but consumer prices were only 2 percent. In first quarter, rents climbed by 5.5 percent, while inflation was 1.5 percent. Even in three-month periods 2017, new rents grew much stronger than inflation rates. While federal government wants to combat increase with incentives for affordable housing and a sharper price brake, associations are calling for fewer requirements and taxes.

The Home Office had evaluated offers of online real estate platforms for establishment. The net kaltmieten of Unfurnished Apartments was included between 40 and 130 square meters without incidental costs. Rents from existing contracts were not recorded. No information was given on actual rents and rents.

The federal government wants to make it palatable for investors to build affordable housing with tax incentives. From perspective of Ministry of Finance, depreciation should apply to objects for which an application is made between 31 August 2018 and 31 December 2021, as stated in a draft law.

In addition, grand coalition wants to tighten rent-price brake for regions with tense housing markets. According to a bill by Justice Minister Katarina Barley (SPD), landlords have to justify before conclusion of contract if y want to pitch ten percent or more on usual rent.

Publish Date : 01 Eylül 2018 Cumartesi 12:00

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