The planned adoption of the Building Modernization Act (GMG) by the federal cabinet, originally scheduled for this Wednesday, has been postponed by at least one week, according to reports from coalition sources cited by “Bild” (Wednesday edition).
The delay stems from a dispute between the Federal Minister of Economic Affairs, Katherina Reiche (CDU), and the Federal Minister for Building, Verena Hubertz (SPD). According to reports, Hubertz is reportedly blocking the finalization of the bill because she wants to improve tenant protection. The Minister expressed concern, as reported by “Bild” that tenants might face excessively high heating costs in the future when new fossil fuel heating systems are installed.
Calculations from the Fraunhofer Institute for System and Innovation Research (ISI), conducted in early April, estimated the impact of the planned reform. These calculations showed that if a gas heating system were installed instead of a heat pump in 2025, the increased cost for tenants would amount to 55 euros monthly. By 2045, this additional expense could rise to 272 euros per month, accumulating to 18,580 euros over a 19-year period.
Furthermore, according to the newspaper, Hubertz intends to ensure that landlords cannot pass on too many costs for installing new heaters and energy-efficient renovations to the tenants. Currently, landlords are permitted to increase the cold rent over six years by up to three euros per square meter, with a maximum increase of two euros per square meter permitted for lower rents.
Reiche, on the other hand, reportedly opposes further changes. She fears that otherwise, many landlords would have to cover the majority of the costs themselves and might consequently forgo necessary renovations. Sources indicated that intense negotiations are underway to resolve the conflict, with an agreement expected by the end of the week.
