Justice Minister Hubig pushes for fines to tighten rent-control rules
Justice Minister Stefanie Hubig said Germany will introduce higher penalties for landlords who break the rent-control cap.
Federal Justice Minister Stefanie Hubig called for stricter sanctions against landlords who ignore the rent-control ceiling, arguing that simple refunds are insufficient. She said an expert group is working on legislation that would impose monetary penalties and overhaul rules on rent-gouging. Hubig highlighted that short-term rentals and furnished units are common ways to sidestep the regulation, and her draft law is being discussed in the Bundestag.
While some parties have suggested seizing large property companies, Hubig argued that expropriation would be costly and ineffective, emphasizing the need for new investment in housing instead. The proposal aims to make the rent-control mechanism more enforceable and protect tenants from rising rents.
Why it matters
Stronger penalties could make rent-control more effective and protect tenants from unaffordable housing.
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