Berlin landlords up in arms over new law

Berlin

UNTIL last week, Thomas Groth had no trouble finding young couples to pay 715 euros (S$1,080) a month for a one-bedroom apartment on Rauchstrasse, a quiet, tree-lined street in Berlin's embassy district. Next time he signs a lease, he'll have to charge 40 per cent less.

Berlin has a new law prohibiting landlords from demanding rents that are more than 10 per cent higher than the area average, in an attempt to keep housing affordable in a city that's attracting 50,000 new residents a year. The rule relies on a disputed index - known as the Mietspiegel - that critics say is a statistical gamble.