The German Property Federation (ZIA) has warned of additional burdens on the housing market on the occasion of the first reading of the Tenancy Law II Package in the German Bundestag. The leading association recognises the socio-political challenge regarding affordable housing as a central social issue.
From ZIA's perspective, however, the proposed package addresses the wrong issues. It does not contribute to the creation of new housing but rather complicates investments in new builds, existing properties and climate protection. Aygül Özkan, Chief Executive of ZIA, stated that affordable housing is not created by continuous interventions in existing tenancy agreements, but by providing more homes. Tenancy law must not act as an investment brake. The continuous sequence of new tightening of tenancy law, unilaterally at the expense of landlords, sends the wrong signals. Anyone who constantly erects new hurdles should not be surprised by a lack of investment.
Criticism of specific regulations in the package
ZIA is particularly critical of the planned restrictions on index-linked rents, short-term rentals, the calculation of the furniture surcharge, and the planned extension of the grace period rule.
- —Index-linked rents: These ensure transparency and planning security for both contracting parties. For owners, they offer inflation protection, making investments in new builds and energy-efficient refurbishments of existing properties more predictable.
- —Short-term rentals: These cover a real need for situations such as project work, temporary assignments, studies, training or research stays. Rigid deadlines would reduce such offerings instead of alleviating the regular housing market.
- —Furnished accommodation: While increased transparency here is welcome, it must not lead to economically unrealistic requirements and increased administrative effort.
- —Grace period payment: This regulation is intended to mitigate hardship but must not lead to landlords being permanently disadvantaged even with significant payment arrears. A planned extension to ordinary termination would further shift the balance in the tenancy relationship in favour of tenants.
ZIA appeals to the German Bundestag to use the parliamentary process for substantial improvements. Özkan concluded by emphasising that Germany needs modern tenancy law that is both socially balanced and investor-friendly. Only in this way can housing be permanently created, maintained and kept affordable.
