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The Left is calling for far-reaching measures from the state in the fight against skyrocketing rents. On Monday the party will present its demands, which IPPEN.MEDIA has already received.
Berlin – Living and renting are becoming more and more expensive in Germany. There is already a shortage of around 600,000 apartments nationwide. Given the slump in the construction of new apartments and houses, there is no prospect of improvement in sight. For the Left, the worsening situation for tenants is reason for a new list of demands to relieve people's financial burden. She wants to revoke the listing of real estate companies on the stock exchange, no longer see apartments as capital investments and the state invests more in non-profit housing.
The Left wants to take action against expensive renting and housing
In their new rent paper, which the party presented on Monday afternoon in Berlin, party leader Janine Wissler and the rent policy spokeswoman for the Left in the Bundestag, Caren Lay, are calling for both short- and long-term measures. The aim is to reduce rents, which have doubled in some parts of Germany in the last ten years. As an immediate program, the Left wants a rent freeze for the next six years and the introduction of a rent cap.
“The rent explosion of recent years must be reversed. The left calls for a nationwide one Rent capwhich freezes rent in tight rental markets and especially high rent lowered,” it says in the paper IPPEN.MEDIA already exists. Index rents, i.e. rental prices that rise with inflation, should also be banned; there should be a hardship fund for energy debts and back payments for heating costs, as well as an excess profits tax for chance profits.
Exploding rents and hardly any new construction in Germany
For the left-wing rent politician Lay, these steps are already indispensable. “The burden of housing costs is becoming ever greater, and for many it is no longer affordable,” Lay said IPPEN.MEDIA in advance of the presentation of the list of demands. “But even for people who can still afford it, the skyrocketing rents mean an incredible loss of wealth. “This is an impoverishment program for urban tenants that endangers social cohesion,” said Lay.
But the short-term rent freeze isn't enough for Lay and the Left. The stumbling housing market is to be brought back up and running again through government investments. According to the Federal Statistical Office, the construction of 18,200 apartments was approved throughout Germany in February 2024. That is around 18 percent less than in the same month last year. Compared to 2021, building permits even fell by over 40 percent.
The Left is calling for more social housing and 20 billion a year
Lay is therefore calling for two things: “Firstly, a real investment program in social housing. Instead of the three billion euros that the federal government is giving for this, we are demanding 20 billion euros annually.” The money should be used for affordable housing. “On the other hand, we want a system change towards non-profit housing, as exists in Vienna, where it works. This also existed in Germany until the 90s. We need non-profit organizations that receive tax rewards,” said Lay.
If the Left has its way, in the medium term half of all apartments in Germany should be organized on a non-profit basis, i.e. in community buildings and cooperatively. Large real estate companies continue to be a thorn in the party's side. “An apartment must not be considered a capital investment, but must be a fundamental right,” said Lay. In order to minimize rent increases caused by real estate speculators, the Left wants to revoke the listing of real estate companies on the stock exchange.
Left disappointed by SPD Construction Minister Geywitz
Lay rejects the criticism from companies and other politicians that this means that no one will build any more and the housing shortage will continue to grow. Private investors would continue to build “luxury lofts”. “Of course the private sector also builds apartments. For affordable housing, however, we particularly need public companies, i.e. municipal, state-owned and the federal government, as well as non-profit organizations such as cooperatives and social institutions such as churches.” The rent paper itself mentions 15 billion euros annually “for a non-profit housing sector.” Lays Argument: “Through private projects we are building past demand.”
Lay is disappointed with the traffic light coalition's construction and rent policy. “The non-profit status is even included in the traffic light coalition agreement, but it won’t be there again this year. So there's no sign of a real trend reversal in rising rents.” When it comes to index rents, the left-wing politician accuses Federal Construction Minister Klara Geywitz (SPD) of doing nothing about it despite recognizing the problem: “You don't have to enforce our left-wing maximum demand of a complete ban. But I would have expected the coalition to at least contain the problem.”
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