Predictions for what will happen next?

Berlin’s state cabinet has agreed on a rent freeze for five years to counter rising housing costs in the German capital.

The city’s leftwing coalition government wants to freeze the rent for apartments built before 2014, according to a report by the German news agency dpa.

Only a minority of Berliners own their homes or apartments and rent has been rising sharply in recent years, forcing many to move outside the city.

The city had been a low-rent mecca for many years, after the fall of the Berlin Wall in 1989 opened the gates to the economically depressed former communist east of the city. This gave rise to an influx of artists and others seeking a more bohemian way of life.

I’ll go with a curtailment then ceasing of all maintenance on buildings from before 2014. Thus the progressive – in both senses, for it’s a result of a progressive policy – return of the city to East German standards of housing.

8 thoughts on “Predictions for what will happen next?”

  1. It’ll get struck down by the constitutional court, but that could take years.

    The prices are utterly unrealistic so market rents will continue to be demanded and paid even if illegal, even if in some unofficial way. Tax revenues from landlords will fall And have to be made up with massive property tax increases which will be blamed on the imminent property tax reforms.

    The commercial landlords won’t be able to charge market rent and their properties will suffer.

    Berlin and the other major cities will not expand outwards as they desperately need to do. In 5 years time it will be a real mess. You will still have dogs in the manger demanding their city centre apartments at peppercorn rents freeloading off the people who have to pay more to live further out as a result of their socialist greed.

  2. Those ultra-efficient Germans! Obviously bombing is out so they chose the next best way of destroying the city.

  3. Southerner, regulation is surely far more destructive than bombing? And cheaper to implement as well, plus it doesn’t release as much carbon dioxide. That’s German efficiency for you!

  4. Judging by the scale of Merkel’s ‘cultural enrichment’ project, they seem to be attempting both approaches, just to be sure.

  5. Bloke in North Dorset

    Predictions for what will happen next?

    Lefties here will use it as a justification – “Look, even the efficient capitalist Germans think its a good idea”.

  6. It will take a long time for those flats to turn into slums. Maintenance will continue until the cost gets to be greater than the rents and then another decade (extrapolating from British rent controls imposed by Lloyd George during WWI and only partially relaxed in the 1950s) after that.
    So illegal sub-letting – Yes. Decline of housing stock to East German standards – in most cases not for decades. Screams of “scandal” when the first slum is discovered by a journalist – of course.

  7. Prediction:

    White landlords sell-up; RoPs buy; then 30 RoPs in a one bedroom flat and Imman approves.

    Authorities ignore as…. see Rochdale, Rotherham, Bradford et al

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