Germany extends rent brake regulation until 2029

The German federal government has extended the duration of the rent brake (Mietpreisbremse) regulation. Under the new legislation, which came into effect on July 23, 2025, federal states are permitted to designate areas with tight housing markets for protection until December 31, 2029.

In designated areas, new rental agreements are generally restricted to a maximum of ten percent above the local comparative rent (ortsübliche Vergleichsmiete). The extension aims to prevent new lease prices in high-demand markets from deviating excessively from local standards. However, the regulation does not apply automatically to every municipality; state governments must actively issue ordinances to implement the protections in specific regions.