Hessen proposes expansion of rent controls and tenant protections

The Hessian Ministry of Economic Affairs has proposed a new tenant protection ordinance to expand rent controls across the state. Under the draft, the number of municipalities designated as having a “strained housing market” would increase from 49 to 71.

In these 71 municipalities, a rent brake would apply to re-lettings, limiting increases to a maximum of 10 percent above the local comparative rent. For existing contracts, rent increases within a three-year period would be capped at 15 percent instead of the previous 20 percent. Additionally, the ordinance proposes a six-year protection period against terminations for personal use or liquidation following the conversion of rental apartments into condominiums.

Concurrently, the industry alliance “Impulse für den Wohnungsbau – HESSEN” has issued a position paper calling for political relief to stimulate construction. The group highlighted that rising energy, material, and construction costs, alongside geopolitical uncertainties, are straining the sector. They are advocating for frameworks that encourage investment, provide planning security, and promote homeownership as a means of long-term wealth building and social security.