Federal Minister of Justice Stefanie Hubig (SPD) has announced plans to implement stricter penalties for violations of the rent price brake. Speaking to the Funke media group, Hubig indicated that she wants to close gaps in current tenancy law to ensure the rent price brake is enforced robustly. Currently, if a landlord violates the regulation, they only have to reimburse the tenant for the excess amount paid, which Hubig considers insufficient. She explained that an expert group is currently reviewing options, including fines for breaches of the rent price brake and a reform of the rules concerning exorbitant rent.
While emphasizing that the rent price brake is effective, the Minister of Consumer Protection noted that there are still too many ways to circumvent the regulations. This issue particularly affects short-term rentals and furnished apartments, which are currently under review in the Bundestag as part of a draft law. Furthermore, the SPD politician announced plans to simplify and make more affordable the construction of homes, specifically referencing Type E buildings and the involvement of a federal construction company.
Despite her focus on regulatory enforcement and new housing solutions, the Federal Minister of Justice spoke out against the expropriation of housing corporations, a measure demanded by parties like the Left in Berlin. Hubig stated that the federal government agrees that the path of nationalization would be unproductive. She argued that expropriating large companies would be costly and yield little benefit, suggesting instead that efforts should focus on encouraging investment in new residential properties.
