The Federal Constitutional Court dismissed a constitutional complaint against the extension of the rent‑cap rule. The Karlsruhe judges announced this decision on Tuesday.
The complainant is a landlord from Berlin who challenged the Berlin Senate’s 2020 rent‑limit regulation and the rule that caps the rent at the outset of a lease. The First Senate chamber ruled that neither the regulation nor the ordinance infringes the complainant’s fundamental rights.
The rent‑cap was inserted into the German Civil Code in 2015, giving state governments the power to designate areas with tight housing markets for up to five years. In such zones the rent at the start of a tenancy may not exceed the local comparison rent by more than ten percent. The rule was extended in 2020 because the market conditions had remained unchanged. For five years the Berlin Senate declared the entire city a high‑pressure housing market.
The court found that the rent restriction pursues legitimate aims and is proportionate. It is not a serious violation of property rights, because it seeks to prevent the exploitation of shortages. The interests of landlords are outweighed by the legitimate interests of prospective tenants and important public welfare concerns. The extension is constitutional, as the ordinance maker must regularly assess the necessity and feasibility of the rent limit (Court decision of 8 January 2026 – 1 BvR 183/25).
