Saxony Rent Control Extension

Saxony extends rent brake - Saxony Extends Rent Control Until Mid-2027

Saxony is extending its rent control measures until mid-2027, Minister Regina Kraushaar (CDU) has announced. The current regulations, set to expire at the end of 2025, will continue to apply in Dresden and Leipzig. However, the future of rent control remains uncertain, as the state government is awaiting the results of an external study due by late summer 2026.

Minister Kraushaar has emphasized that rent control is not a long-term solution and that more construction is needed to tackle the housing crisis. She sees the extension as a fair balance between tenant protection and property rights, despite criticism from the Left and Greens. The Left demands stricter sanctions against property owners and stronger state control bodies, while the Greens criticize Saxony for not utilizing the full extension period possible until 2029.

In the meantime, the Saxon state government is focusing on expanded low-interest loan programs for homebuyers, particularly families. Launched on October 10, 2025, the new program lowers the required equity, increases loan amounts, and extends benefits to cooperative housing projects and low-income households. However, there are no reports of direct sanctions on realtors or enhanced powers for regulatory authorities in this context.

The state government will decide on the future of rent control based on the findings of the external study. Under the current rent control, new rentals cannot exceed the local average by more than ten percent. While the extension provides temporary relief, the Saxon government is exploring alternative solutions to address the housing market situation across the state.