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Market analysis··2 min read

Building Modernisation Act: BSB criticises lack of planning certainty

The Bauherren-Schutzbund e.V. (BSB) expresses disappointment with the adopted Building Modernisation Act (GModG) and criticises the absence of reliable framework conditions for private owners.

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Building Modernisation Act: BSB criticises lack of planning certainty. Illustrative image generated using artificial intelligence (AI). The image does not depict a real property, person or event and is not a documentary photograph. Labelled in accordance with Article 50(4) of the EU AI Act.

The Bauherren-Schutzbund e.V. (BSB) has expressed disillusionment following the adoption of the Building Modernisation Act (GModG) in the German Bundestag. Managing Director Henrik Fork-Weigel criticised that the government factions had failed to establish reliable framework conditions for the transformation of the building sector during the parliamentary process. The short timeframe between the first reading in June and the committee resolution at the beginning of July, only a few weeks, was deemed insufficient.

Key regulations of the Act were amended in fast-track procedures. Although further legislation was announced, fundamental demands from consumer protection groups were not considered in the text of the Act. In particular, a strengthened independent energy consultancy and a reinforced renovation roadmap as a binding orientation tool for private owners were not included in the adopted Act.

Funding and pressure to act

Parallel to the legislative deliberation, the federal government announced a significant reduction in subsidy rates within the framework of the Federal Funding for Efficient Buildings (BEG). These reduced rates will come into effect at KfW and BAFA from 21 July, immediately after the adoption of the GModG. Mr Fork-Weigel emphasised that this creates short-term pressure to act instead of long-term planning certainty.

The short-term reduction of financial support for citizens is counterproductive and does not create reliable framework conditions. The BSB therefore calls on the federal government to stabilise the funding instruments, effectively extend transitional periods for ongoing planning, and retrospectively implement independent energy consultancy as an integral part of the overall package. The stability of funding instruments is essential to secure private investments in building modernisation.

Independent advice as a key factor

The absence of a binding and strengthened independent energy consultancy is regarded by the BSB as a significant gap in the GModG. Such consultancy could offer private owners the necessary orientation and expertise to make informed decisions regarding the energy-efficient renovation of their properties. Without this support, there is a risk of ineffective renovation measures and uncertain investment planning. The renovation roadmap, in turn, would offer a clear structure for the individual modernisation process and minimise financial risks for owners. The legislature has missed an important opportunity to strengthen the consumer's position here.

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