Berlin landlords up in arms over new law
It prohibits them from demanding rents that are over 10% higher than the area average
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.
"We could easily rent apartments on Rauchstrasse for 13 euros a square metre, but according to the new rules, …
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