Geisel calls for rent freeze in Berlin
Berlin’s housing market remains tense. Affordable housing is in short supply. In response, the “Alliance for New Housing Construction and Affordable Housing” met for the first time in late January. The Berlin Senate wants to create more affordable housing and boost new construction in cooperation with the district authorities and the housing and construction industries. Andreas Geisel, Senator for Urban Development, Construction and Housing, has called for a voluntary, five-year rent “freeze” on the part of the housing companies. However, he wants rent increases to be linked to the rate of inflation, rather than a complete freeze. In return, he will make it easier for developers to get new construction projects up and running by guaranteeing faster building permits. The IVD Berlin-Brandenburg is keeping a close eye on the proposals and has already warned against embarking on the wrong path of too much regulation, especially in the wake of the failed rent cap.