Giffey wants to link rent to salary

From Hildburg Bruns

“Imagine that nobody in Berlin has to pay more than 30 percent of their net household income for rent. That would be fair and a comprehensible solution for everyone. Because what an affordable rent is, differs – depending on whether a saleswoman, a dentist or the governing mayor rents an apartment. If the 30 percent is the maximum for everyone, that would be a very fair solution.”

Franziska Giffey (44), Governing Mayor in the Tagesspiegel

This is how Berlin’s rulers (44, SPD) calculate their new dream rent in order to finally ensure affordable apartments in the capital!

Because in three weeks the moment of truth will come for the politician. Is your agreement on the Alliance for New Housing and Affordable Housing worth the paper with the fresh signatures – or is it a flop?

Since January, Giffey & Co have been negotiating with investors, real estate associations, tenant representatives and building politicians to ensure that Berlin’s social issue is turned around for the better.

Two goals have already been overturned: At least this year, no 20,000 new apartments can be achieved and a voluntary rent freeze by landlords is “no longer a realistic option”, said building senator Andreas Geisel (56, SPD) at the weekend. Reason: inflation, delivery problems, staff shortage …

Now the Giffey proposal to link rents to income. A public rental price inspection agency should determine the amount of the excess, which will support tenants in taking action against the expensive rent.

Should this really apply to all tenants?

“The upper limit should apply to all tenants,” said building senator Geisel to BZ. “Of course, if the living space is of a reasonable size.” In larger apartments, for example, only 40 square meters would be reduced for singles and 60 square meters for two people.

The State Statistical Office determined that four years ago a Berlin household spent an average of 756 euros/month on housing, which was 31.3 percent of the available income of 2414 euros.

First session with 26 guests in the ballroom of the Red City Hall.  A rent pact has been under negotiation since January, and the final declaration is to be signed on June 20

First session with 26 guests in the ballroom of the Red City Hall. A rent pact has been under negotiation since January, and the final declaration is to be signed on June 20 Photo: Ralf Gunther

In a draft of the final agreement with the landlords, the 30 percent mark is linked to an intended price increase. Literally it says: “They will not implement increases that lead to household burdens of more than 30 percent of the annual household income.”

“Personally, I could imagine such a regulation, but with a range of 30 to 35 percent,” says project developer Thomas Groth. “If we rent, 35 percent load is the upper limit.”

“Big landlords do that,” explains Rainer Wild (67) from the Berlin Tenants’ Association. However, he fears that with a general percentage rule, households with lower incomes will be left behind when it comes to housing. “Landlords have an interest in letting high-income tenants into the apartments.”

Another problem from Wild’s point of view: “With every rent increase, the income would have to be checked. However, experience has shown that only a few perceive their entitlement to help – out of shame.”

And what if income shrinks due to job changes or job losses?

“We are not that far yet. At the moment it is still a description of the target,” says Geisel about the intended regulation.

Thorsten Schatz (39), CDU building councilor in Spandau, does not believe in success anyway: “My impression is that the landlord side does not go along with this rent cap light. Construction costs are exploding, landlords have to think economically.”

Housing associations are already lowering the rent

Tenants can already apply to the six municipal housing associations for their net cold rent to be reduced to 30 percent of household income.

Only 107 of 332,000 tenants submitted such an application (2020), of which 87 (81.3 percent) were approved. City and country, Gewobag and Degewo were particularly affected.

The companies attribute the low number to the low increase in rents both in the existing building (maximum 2 percent) and also after modernization. The latter concerned four of the 107 applications.

If the limit is exceeded, the reduction is prorated only for the appropriate apartment sizes. Housing benefit and similar benefits are included in the determination of the 30 percent limit.

For special needs groups, such as Harz IV households, it is guaranteed that the rent can be paid anyway.

Greens prefer to freeze rent for five years

The Greens propose a five-year rent moratorium, i.e. a rent freeze. All players in the rental alliance (including Vonovia) should send the tenants a written addendum to the rental agreement.

Mayor Bettina Jarasch (53, Greens)

Mayor Bettina Jarasch (53, Greens) calls for a moratorium Photo: dpa

More suggestions:

► Apartment exchange market: Within the alliance, an exchange should be possible on the same terms – without a new rental surcharge.

► Voluntary commitment to use solar energy: In the case of new construction, use the roofs as much as possible for solar panels, in the case of renovation, use the entire area.

► Refrain from using gas/heating oil for heat supply – self-commitment to create a timetable for switching to heat pumps or renewable heat in the entire portfolio.

Leftists are demanding 60 percent social rents for new buildings

The left takes a critical view of agreements with the housing and construction industry, speaking of “squaring the circle.” Externally, only the ability to act should be simulated.

Left rent expert Niklas Schenker (29)

Left rent expert Niklas Schenker (29) Photo: Christian Lohse

The demands of the left:

► In the future, social rents or regulations for entitled tenants are to apply to 60 percent of the floor space.

Alternative: The investors “buy” their way out of it, giving half of their building land cheaply to a municipal company or the state of Berlin before the planning starts.

► Five years rent moratorium. The left understands by this that the net cold rents in the existing building and in the case of re-letting may rise by a maximum of 1 percent annually until the local comparative rent is reached.

► Allocate modernization costs to the tenants at a maximum of 1 euro/sqm (or 6 percent).

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