The head of human resources at Germany’s largest landlord, Vonovia, Ruth Werhahn, has launched a critique of the current iteration of the federal rent control measures, highlighting their unintended consequences and advocating for a more targeted approach. While acknowledging the need for social protections given the acute housing shortage, Werhahn argued that the existing legislation lacks social sensitivity and risks disproportionately impacting vulnerable tenants.
Speaking to the Funke-Mediengruppe newspapers, Werhahn stated that the rent control framework, as currently structured, does not effectively prioritize assistance for those with lower incomes, instead applying a blanket restriction that can hinder investment and overall housing supply. This critique arrives at a time when municipalities across Germany are grappling with affordability crises and escalating tensions surrounding housing access.
Notably, Werhahn expressed support for government efforts to penalize exploitative rent increases, acknowledging the need to address landlords who leverage the market’s desperate conditions for financial gain. However, she insisted that increased construction of new housing remains the most effective long-term solution to alleviate the national housing shortage, which she pointed out is placing significant strain on both citizens and the German economy.
Werhahn also linked the recent Berlin expropriation initiative – a proposal to seize large-scale rental properties – to the broader struggle Berlin residents face in securing affordable housing. She dismissed the initiative as misguided, reiterating that increased construction represents the most viable route to resolving the underlying problem and fostering social cohesion. “Addressing the challenges faced by German citizens will strengthen societal bonds” she stated, emphasizing Vonovia’s own role in contributing to the solution through new building projects.
Interestingly, Werhahn downplayed the significance of tenant-led debates, asserting that Vonovia’s renters express high levels of satisfaction. This assertion, however, is likely to be met with skepticism, given the company’s history and ongoing controversies surrounding rent increases and eviction practices and the generally fraught relationship between large corporate landlords and their tenants. Her remarks represent a carefully calibrated message, attempting to position Vonovia as a responsible stakeholder while simultaneously advocating for policies that may be perceived as benefiting the company’s bottom line.
