Minister wants to take action against indexed rents, furnishings and usury

Berlin – Federal Construction Minister Verena Hubertz (SPD) has advocated for stricter regulation of indexed rents and furnished apartments, and also announced plans to combat rent gouging. "Justice Minister Stefanie Hubig has extended the rent control law for four years. But that's not enough. We also have to take action against rent gouging," Hubertz told the newspapers of the Funke Media Group (Tuesday editions). More housing is needed through new construction, but also "fair rules of the game," the SPD politician clarified. Many people are worried about the high cost of housing. Hubertz also spoke in favor of stricter regulations for the rental of furnished apartments. "If someone puts an old couch in the corner and then charges 35 euros per square meter instead of eight euros per square meter – and this happens in major cities – then that has nothing to do with reasonable surcharges," she said. It must be clearer in the contract which costs relate to the base rent and which to the furnishings. "Once this transparency is established, we can start thinking about regulations." The Minister for Construction also intends to take action against indexed rents. "Indexed rents are a problem," said Hubertz, referring to the expert commission appointed by the Federal Ministry of Justice to develop proposals for regulation. Hubertz wants to restructure and simplify the funding programs for new construction and building renovations. "We have many funding programs: KNN, KFN, WEF, 'Young Buys Old' – people can't keep track of them anymore," Hubertz told the newspapers of the Funke Media Group. "We want to make it simple now: There should be one program for new construction and one for renovations." Families will be a key consideration in these programs. When asked whether the old child benefit for home construction could return in the form of grants instead of the current low-interest loans, Hubertz said: "We have no preconceived notions. We are calculating many scenarios to determine which measures could help." According to Hubertz, demand for the "Young Buys Old" subsidy program is currently developing positively. "Since the recent improvements to the conditions, we have seen a doubling of commitments," she said. Critics repeatedly complain about the income limits for the subsidy program. The SPD politician indicated that these could certainly be adjusted again: "Income limits are not taboo. We constantly evaluate the limits, including during our budget discussions." She considers regionally varying income limits legally unfeasible. Regarding the recently reactivated new construction subsidy for the EH-55 standard, Hubertz ruled out its continuation beyond addressing the construction backlog. "Unfortunately, it's not sustainable in the long term, because according to the Federal Budget Code, we are not allowed to subsidize the legally mandated standard. And that is EH55," she said.