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Merkel’s Cabinet Backs Rent Control as Home Costs Rise

Chancellor Angela Merkel’s cabinet backed legislation to curb rents as rising housing costs in Germany put pressure on her government to act.

The draft law caps rents for new contracts in existing homes at 10 percent above the local average in areas identified as having “tight” housing markets starting next year. The proposal fulfills an affordable-housing campaign pledge by the Social Democratic Party, the junior partner in Merkel’s coalition government.