Left Party warns against privatization of apartments - Left Party demands federal fund to stop housing privatisation crisis
Left Party Calls for Fund to Allow Cities to Buy Back Housing, Warns Tenants Bear Brunt of Privatization
The Left Party is warning against further privatization of municipal housing and proposing an alternative: a fund to enable cities, local authorities, or their affiliated companies to repurchase housing stock. A "Remunicipalization and Stabilization Fund" could also provide support to housing providers in times of crisis, explained Juliane Nagel, a state parliamentarian for the party. Due to financial distress and legacy debts dating back to the post-1990 era, many municipal and cooperative housing providers are under severe financial strain.
Left Party: Tenants Are the Ones Suffering from Privatization
Nagel pointed to the insolvency of housing associations and the sale of municipal apartments in towns such as Hainichen, Crimmitschau, Klingenthal, and Königswartha. "In the long run, tenants are always the ones who suffer from privatization," she said. "New private owners are primarily interested in extracting profits." Maintenance and repairs are often delayed, landlords are frequently unreachable, and tenants face the constant threat of having their heating or water supply cut off.
Left Party Demands Debt Relief for Municipal Housing Companies
"The ongoing sell-off of public property is a mistake and must be stopped immediately," emphasized Caren Lay, the Left Party's federal spokesperson on rent and housing policy. "It is time to support repurchases by local governments—including through federal debt relief for municipal housing companies." Where necessary, she added, large property corporations owning more than 3,000 units should face expropriation.
Nagel argued that while selling off housing or company shares may offer short-term financial relief, it is the wrong approach. "Municipalities lose crucial oversight, and tenants pay the price," she said, citing recent examples as clear evidence. Housing, she stressed, belongs in public or community-oriented hands.
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