Germany Agrees New Home Rent Controls as Housing Remains Tight

Germany’s governing parties agreed to terms for new rent control laws aimed at keeping housing in large cities affordable, addressing a dispute that started after the 2013 national election.

The proposed law caps rents for existing apartments at 10 percent above the local average in areas where the housing market is deemed to be tight. It doesn’t apply to newly built homes. Angela Merkel’s Christian Democratic Union and its Social Democrats coalition partner will send the measure to parliament next week, Volker Kauder, CDU’s parliamentary chief, told reporters Wednesday.