German business lobby pushes radical overhaul of rent laws and social housing
Facing severe housing shortages in many cities, the CDU-affiliated business lobby Wirtschaftsrat der CDU has proposed introducing a "misallocation levy" on social housing tenants. According to a report by Redaktionsnetzwerk Deutschland (Thursday editions), the suggestion is outlined in a position paper set to be submitted to the government's newly formed Rent Law Commission.
Wolfgang Steiger, the group's secretary-general, highlighted the issue with a striking example: Under current law, a medical student who initially qualifies for subsidized housing could later, as a chief physician, continue living in the same state-supported apartment at taxpayers' expense.
"Once someone moves into subsidized housing, they currently enjoy low rents for life—regardless of how much their income grows over time," Steiger told the newspapers. "This is unfair and must be stopped."
The Wirtschaftsrat also advocates for "more flexible rent pricing paired with stronger social welfare support," Steiger explained. "Specifically, this means easing—or ideally abolishing—rent control measures and lifting the cap on rent increases." He further called for a review of the modernization surcharge, which allows landlords to pass renovation costs on to tenants.
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