BERLIN, Germany - The German Bundestag has voted to extend the country's rent control policy, known as 'Mietpreisbremse' or 'rent brake', until the end of 2029. The decision, made on June 26, 2025, aims to protect tenants in areas with strained housing markets from significant rent increases [1][2][3][4][5].

The extension was approved with support from the governing coalition of CDU/CSU and SPD, along with the Green Party. The AfD voted against the measure, while The Left Party abstained [1][2][3][4][5].

Under the Mietpreisbremse policy, landlords in designated areas with tight housing markets are prohibited from raising rents more than 10% above the local comparative rent when re-letting properties. This measure is designed to curb rapid rent increases in popular urban areas [1][2][3][4][5].

The extension has received mixed reactions from various stakeholders. The German Tenants' Association (Deutscher Mieterbund) welcomed the decision but called for the government to address the numerous exceptions to the rule. Conversely, the property owners' association Haus und Grund considers the rent brake unnecessary [1][2][3][4][5].

Critics argue that the policy has several loopholes that limit its effectiveness. For instance, the rent brake does not apply to new buildings or extensively modernized apartments. Additionally, if the previous tenant paid a higher rent, the landlord can maintain that rate for new tenants [1][2][3][4][5].

The extension of the Mietpreisbremse reflects ongoing concerns about housing affordability in Germany's major cities. As urban populations continue to grow, balancing the interests of tenants and property owners remains a significant challenge for policymakers.

This development is part of a broader trend of housing market interventions in European cities grappling with rising living costs. The effectiveness of such measures and their long-term impact on housing markets will likely continue to be subjects of debate among economists, policymakers, and housing advocates.