Stefanie Hubig proposes fines for rent brake violations

German Federal Justice Minister Stefanie Hubig (SPD) has announced plans to introduce stricter sanctions for violations of the rent brake (Mietpreisbremse). Currently, landlords who exceed legal limits are typically only required to refund the overpaid amount to tenants. Hubig argues that this measure is insufficient to deter illegal practices.

An expert group is currently evaluating the implementation of fines for violations and a reform of laws regarding usurious rents. Hubig aims to close loopholes that allow landlords to bypass regulations, specifically targeting short-term rentals and the leasing of furnished apartments, which are frequently used to command higher prices. A legislative draft addressing these issues is currently under deliberation in the Bundestag.

In addition to rental reforms, Hubig mentioned plans to facilitate easier and more cost-effective construction through the ‘Building Type E’ model and discussed the potential for a federal housing company to increase supply. Regarding calls from political groups like Die Linke for the expropriation of large housing corporations, Hubig stated that the federal government agrees that socialization is not a productive path, noting that expropriation is costly and yields little benefit.