Hubertz Targets Rent Abuses, Vows ‘Fines That Hurt’

Berlin pairs “fines that hurt” with a build turbo to speed approvals while scrutinizing subletting, furnished rentals, and index rents.

Germany’s Federal Housing Minister Verena Hubertz (SPD) is pressing for stricter rules and penalties that “really bite” against landlords who flout rent controls, saying loopholes around furnished apartments, costly underletting and inflation-indexed leases have distorted parts of the market. In an interview, she argued the Mietpreisbremse (rent brake) remains a key instrument to stop existing rents from “exploding,” but only if violations draw meaningful fines.

What would change: transparency and enforceability

Hubertz wants greater transparency for furnished rentals, including a requirement that any furniture surcharge be itemized in the lease so tenants can see what they are paying for. She also flagged abuses in subletting, where apartments can be re-offered at far higher prices than the original contract allows—an area she said is “very hard to police” in practice. The thrust: it is still “relatively easy not to follow the rules,” and enforcement needs teeth.

Her push dovetails with steps at the Justice Ministry, where a newly launched expert commission on tenancy law has begun work on proposals to curb rent gouging and set new fine schedules for violations of the rent brake. The panel is expected to deliver options by the end of 2026.

Index-linked rents under the microscope

So-called index rents (Indexmieten) peg rent to the national consumer price index. They surged in visibility during the inflation spike, drawing criticism from tenant groups but also support from landlords who note that modernizations cannot be passed on under such contracts. New data suggest index leases still account for a small share of contracts overall—about 2.6%—but are more common in post-2014 buildings and big cities. Policymakers across parties have signaled an appetite to tighten rules on these agreements without banning them outright.

The rent brake has been extended—now comes the stick

The federal government has extended the Mietpreisbremse to December 31, 2029, maintaining the cap that—at first letting in designated tight markets—rents may not exceed 10% above the local reference rent. With that baseline now set, Hubertz argues that credible fines are needed so non-compliance is not simply a calculated risk.

Supply is the other half of the equation: the “Bau-Turbo”

Hubertz stresses that enforcement alone won’t fix the structural shortage. The government is moving a “Bau-Turbo” (build turbo) through parliament to speed approvals, including a proposed new §246e in the Federal Building Code that lets municipalities shortcut some planning steps when local conditions warrant. The cabinet has approved the bill; first reading took place in July, and the ministry has targeted autumn 2025 for passage. Supporters call it a pragmatic fast lane; critics worry about planning quality and local burdens.

Why urgency is rising: completions trend down

The housing pipeline continues to thin. Forecasts point to roughly 205,000 completions in 2025, down sharply from 2024 and well below levels needed to close the gap. Industry surveys foresee further weakness into 2026 before a tentative stabilization. These constraints are feeding rental pressure despite softer headline inflation.

Money on the table: a larger housing budget

The BMWSB (Housing Ministry) says its 2025 budget rises to €7.4 billion, with total authorizations around €12 billion when multi-year commitments are included. In parallel, the government highlights additional lines from special investment funds for infrastructure and climate-related programs that intersect with housing. Whether those envelopes translate into accelerated delivery depends on permitting capacity and market conditions.

Stakeholders line up for a fight

Tenant advocates back clearer rules for furniture mark-ups and subletting and want swift penalties for rent-brake breaches. Landlord groups counter that more sanctions could depress new supply and warn of unintended consequences from over-regulation—particularly if the rent brake’s scope broadens while building costs stay high. The Justice Ministry’s commission is designed to bring both sides to the table, but expectations differ sharply.

What renters and landlords should watch

What is the Mietpreisbremse today?

In designated tight markets, the initial rent on a new tenancy may not exceed 10% above the local reference rent; the framework has now been extended to end-2029. Local ordinances determine coverage Bundesregierung.

Will furnished apartments be treated differently?

The government is weighing mandatory disclosure of furniture surcharges in leases to deter hidden mark-ups. Hubertz has endorsed this; the Justice Ministry is exploring precise drafting via its expert group Tagesspiegel.

Are index-linked leases common—and are they changing?

They remain a niche overall (≈2.6%), but are more prevalent in newer buildings and large cities. Policymakers are discussing tighter guardrails rather than an outright ban Institut der deutschen Wirtschaft (IW).

How would the “Bau-Turbo” speed construction?

It would let municipalities depart from some planning rules to approve housing faster, with a new §246e BauGB at its core. The bill cleared cabinet and is moving through the Bundestag Deutscher Bundestag.

Enforcement bite meets a race to build

Hubertz’s bid to pair “fines that hurt” with faster permitting reflects a dual strategy: discipline parts of the rental market while adding supply. The shape of the fines regime—and any new rules for furnished and index leases—will emerge from the Justice Ministry’s expert process over the next year, even as lawmakers push the Bau-Turbo toward passage. With completions falling and a still-wide shortfall, the stakes for both tenants and developers are rising—and the politics of German rental housing are set to intensify into 2026.

Source:Deutscher Bundestag Institut der deutschen Wirtschaft (IW) Tagesspiegel Bundesregierung