Foreign

German Constitutional Court drops controversial Berlin rent ceiling

Published

on

News

A controversial rent cap to control soaring rents in the German capital Berlin has been dropped by the country’s Constitutional Court.

The legislation had been well received by tenants, but criticized by developers and landlords since it came into force in February 2020.

Since then, rents for around 1.5 million apartments in Berlin had theoretically been frozen at June 2019 rates.

The court ruled on Thursday that the Berlin government had exceeded its powers in introducing the law, with federal rent law already in place.

“Previous federal laws attempted to strike a fair balance between the interests of tenants and landlords, interests that are protected by fundamental rights.

“This means that ‘German states are not allowed to pass rent legislation in this regard,’ an English court statement said.

The Berlin rent ceiling was therefore “completely empty”.

The court ruling means that rents that had been reduced in accordance with the law can now go up.

Several thousand tenants may also be required to repay their rent for months that have elapsed since the entry into force of Berlin law.

The rent cap was unique to the German capital, where a left-wing coalition was in power under the leadership of Mayor Michael Mueller.

Mueller this year described the law as a necessary “respite” for tenants struggling to cope with soaring costs of renting property in the city.

The challenge to the Constitutional Court was originally launched by the center-right parties CDU and CSU and the liberal FDP party, which argued that the municipal government had exceeded its powers.

The FDP welcomed the decision Thursday as “good news”.

FDP lawmaker and housing expert Daniel Foest said the Berlin Senate “exploited tenants in Berlin for an ideological experiment and it failed”.

Shares of large real estate company Deutsche Wohnen rose sharply after the decision. (dpa / NAN)

(NAN)

Short Link: https://wp.me/pcj2iU-3yPX

NNN

NNN: :is a Nigerian online news portal that publishes breaking news in Nigeria, and across the world. Our journalists are honest, fair, accurate, thorough and courageous in gathering, reporting and interpreting news in the best interest of the public, because truth is the cornerstone of journalism and they strive diligently to ascertain the truth in every news report. Contact: editor @ nnn.ng

Coronavirus – Eritrea: Announcement from the Ministry of Health (May 11, 2021) Coronavirus – Daily update on the status of COVID-19 statistics in Zambia (May 11, 2021) Eid-el-Fitr: NSCDC deploys 700 personnel in C/River Coronavirus – Nigeria: COVID-19 case update (May 11, 2021) NEITI, EFCC, others set to enforce transparency in extractive industry FIFA and Qatar invite MAs to discuss human rights with international experts ahead of FIFA World Cup Pozzovivo tests his legs after Campenaerts’ breakaway in the 4th stage of the Giro d’Italia Coronavirus – Rwanda: COVID-19 update (May 11, 2021) Eid-el-Fitr: Gov. Bello urges Nigerians to keep faith with government The Significance And Lessons From Ramadan Coronavirus – Eswatini: COVID-19 daily update (May 11, 2021) Coronavirus – South Africa: COVID-19 Statistics in South Africa (May 11, 2021) Netflix acquires Mekwunye’s film “One Lagos Night” Coronavirus – Kenya: COVID-19 update (May 11, 2021) UK seeks tariff exemption on solar equipment The newest TECNO CAMON 17 Pro has raised the bar for selfie smartphones, allowing users to express themselves creatively in their own way “About a Boy” the winner of the Nollywoodweek Film Festival 2021 Energy Capital & Power Confirms High Level Sponsors for South Sudan Oil & Power 2021 Event APC Edo felicitates with Muslims on Eid-el Fitri Eid el-Fitr: A time to renew Nigeria’s pact with destiny – PDP Southern Senators’ Forum lauds governors on security steps Kogi registers indigent households impacted by COVID-19 Police arrest 4 suspected cattle rustlers with 208 animals Osinbajo arrives in Kampala for Museveni’s inauguration Adamawa leads as Nigeria records 47 new COVID-19 cases Nollywood veteran, Genevieve Nnaji, stars in new audio play “Fela Ten Twenty” Eid-el-Fitri: Makinde congratulates Muslim faithful Eid-El Fitr: Police deploy 2,161 personnel in Plateau. INEC partner stakeholders to site new polling units in Enugu Buhari mourns ex minister, Mama Taraba FG proposes 65 yrs retirement age for doctors, health workers Anambra 2021: Sen. Okadigbo drums support for APC’s Andy Uba Insecurity : We will not relent in fight against criminality – Police Manchester City win 2020/21 EPL title Osinbajo to represent Nigeria at Ugandan presidential inauguration Osinbajo lauds SecureID for pioneering smart card manufacturing in Nigeria NDLEA confirms attack on its Ohafia office in Abia Tension in Edo PDP over dissolution of State, LGA party executives Sultan declares Thursday as 1st day of Shawwal Southern Governors’ Forum urges FG to convoke national dialogue Eid-el-Fitr: Gbajabiamila enjoins Muslims to pray for Nigeria AfDB to invest $3bn in Africa’s pharmaceutical industry 4 arrested for alleged forgery, sabotage in Edo Dare visits Olympics-bound athletes in camp South Sudan in worst food crisis as humanitarian aid dwindles FG not overwhelmed by insecurity – Lai Mohammed Buhari approves new security measures to tackle insecurity in S/East, S/South Traditional ruler canvasses for removal of mining from Exclusive list CIBN seeks synergy for economic development LASUTH makes stride in microvascular tissue transfer