Rental price brake for 57 cities: NRW limits rent increases!

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From March 1, 2025, the rental price brake will apply in Krefeld to relieve the tense housing market and limit rent increases.
From March 1, 2025, the rental price brake will apply in Krefeld to relieve the tense housing market and limit rent increases. (Symbolbild/ANAG)

From March 1, 2025, the newly expanded rental price brake comes into force in Krefeld and Kempen. This was decided by the state government of North Rhine-Westphalia (NRW) to relieve the tenants in municipalities with a tense housing market. According to Welleiederrhein.de , the regulation is expanded from 18 to a total of 57 cities and municipalities.

The decision to expand the rental price limits is part of the special tenant protection regulation, which has so far only been used in a small part of the 396 municipalities in NRW. The new regulations stipulate that rents can increase by a maximum of 15 percent within three years. In the case of new rental contracts, the rent may only be up to 10 percent above the local rents.

regulations and deadlines

In addition, the locking period is extended to eight years if rental apartments are converted into condominiums. This regulation applies until February 28, 2030. NRW construction minister Ina Scharrenbach (CDU) emphasizes the need for larger federal law efforts to protect tenants from usury and, together with other countries href = "https://www.n-tv.de/regionales/nordrhein-westfalen/nrw-dehn- rental price limits-drastic-aus-article2522329.html"> n-tv.de reported.

Despite the positive approach of the government, there are critical voices. The owners' association Haus & Grund comments on the effects of the rental price brake on the landlords. A common point of criticism is that it is not the cold rents that are the main problem, but the high additional costs. This leads to a tense relationship between tenants and landlords.

criticism from the opposition

The opposition in the state parliament has also expressed critical votes for the tenant protection regulation. The FDP describes the new regulations as "rigid price restrictions" that could deter potential investors and hinder the new housing. Angela Freimuth, the construction policy spokeswoman for the FDP parliamentary group, criticizes the longer blocking period as insufficient for owners.

In contrast, the German Tenants' Association of North Rhine -Westphalia welcomes the extension of the tenant protection regulation by five years and emphasizes that many people will benefit from it. However, despite these positive aspects, the new regulation remains behind the expectations, especially in large cities in the Ruhr area and in cities with rising rents such as Mönchengladbach or Mettmann, such as WDR added.
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