Rent cap: Over 360 euros paid too much – tenants fight back!

Rent cap: Over 360 euros paid too much – tenants fight back!

As of July 1, 2025, the rent cap has now been in effect for ten years, and the debate about it seems to never end. Originally introduced to curb rent increases in tight housing markets, the scheme was recently extended until the end of 2029. That's how he reports NDR that the rent cap applies particularly in cities such as Rostock, Hanover, Hamburg and the East Frisian Islands.

The rent cap allows the rent for new rentals to be a maximum of 10% above the local reference rent. In Hamburg, the rent cap could be applied again since July 3, 2018, following a ruling by the regional court that declared the previous regulation invalid due to formal deficiencies. An existing regulation had previously expired on June 30, 2020, but the Senate reacted promptly and extended the rent regulation for another five years. This information comes from Hamburg.de.

Tenants suffer from high prices

While rent controls offer some protection, rents in many cities are still exorbitantly high. Christiane G. from Hamburg, for example, pays 1,500 euros in rent for her apartment in Altona. This sum is over 20 euros per square meter - a clear violation of the rent cap if you keep an eye on the rent index, which shows a local comparable rent of less than half for your area.

Niklas Wendeborn, on the other hand, was lucky: he was able to reduce his rent by 300 euros per month and also received back the excess rent paid for the last two and a half years. This shows how important the rent control is for tenants if they don't want to end up in a rent trap. The Hamburg tenants' association reports that an average of 360 euros in rent is overpaid per month due to violations of the regulations. Rolf Bosse, managing director of the association, sees the rent cap as an important instrument, but calls for stronger protection against dismissal for tenants.

Political voices on rent control

The political landscape on the subject of rent control is as diverse as it is controversial. While the federal government introduced the current draft law to extend the rent cap by the CDU/CSU and SPD and it was also supported by Alliance 90/The Greens, the AfD and Die Linke rejected corresponding changes or tightening. The latter criticized the rent cap as ineffective and called for a real rent freeze.

The Bundestag emphasized that the regulation cannot be a permanent solution. The CDU/CSU are calling for more new construction to get the ever-increasing rents under control, while voices continue to be raised for more comprehensive reforms and improvements in rental policy.

A mixed conclusion

The rent control remains an exciting topic in German housing policy. Despite their introduction and recent extension until 2029, there are still many questions and uncertainties for both tenants and landlords. The fight for housing is far from over, especially in cities with high demand. The rent cap can protect many tenants, but the housing shortage probably cannot be solved alone, Torsten Flomm from the Hamburg Landowners Association is also sure. Without new construction and better framework conditions, it will be difficult to stabilize the market in the long term.