Berlin becomes first German city to make rent cap a reality

Herr Tubthumper · Jun 2, 2015

This is interesting.

"Capital pioneers law prohibiting landlords from charging new tenants more than 10% above local average."

Given UK rent is increasing is this something which could/should be applied to the UK as well?

http://www.theguardian.com/world/2015/jun/01/rent-cap-legislation-in-force-berlin-germany

midnight_rendezvous · Jun 2, 2015

Rent control should be introduced but it won't be.

TomandJerry · Jun 2, 2015

Wouldn't happen in the UK

beorhthelm · Jun 2, 2015

in a survey, rent caps was one of a handfull of items that virtually all economist agree on, with the view that its a bad idea. it will be an interesting experiment for the Beliners to see if they can overcomes the problems.

i already see a problem here as reported, this will encourage landlords to sign only one year contracts and automatically increase the rent 10% above the average, so driving up the average.

Herr Tubthumper · Jun 2, 2015

beorhthelm said:
in a survey, rent caps was one of a handfull of items that virtually all economist agree on, with the view that its a bad idea. it will be an interesting experiment for the Beliners to see if they can overcomes the problems.

If I was going to discuss housing issues...economists wouldn't be the first profession I'd turn to.

Back to Berlin, the problem is fast rising rents. Surely a rent cap will overcome this problem?

cjd · Jun 2, 2015

beorhthelm said:
in a survey, rent caps was one of a handfull of items that virtually all economist agree on, with the view that its a bad idea. it will be an interesting experiment for the Beliners to see if they can overcomes the problems.

i already see a problem here as reported, this will encourage landlords to sign only one year contracts and automatically increase the rent 10% above the average, so driving up the average.

Seems obvious to me, that is what will happen.

Still, the Germans like a bit of hyper inflation.......gives them all the excuses they need.

Herr Tubthumper · Jun 2, 2015

beorhthelm said:
in a survey, rent caps was one of a handfull of items that virtually all economist agree on, with the view that its a bad idea. it will be an interesting experiment for the Beliners to see if they can overcomes the problems.

i already see a problem here as reported, this will encourage landlords to sign only one year contracts and automatically increase the rent 10% above the average, so driving up the average.

I'm pretty certain sitting tenants already have rent controls fair more restrictive than 10%. I understand "new contract" in the sense of this article means new tenants. I'll look into this

glasfryn · Jun 2, 2015

this needs serious discussion but I doubt it will be as its not on anyones list of priorities
only those who have to pay large rents
we are lucky we have a good agent and a good landlady ...................and the rent has not yet gone up in three(3) years

Chicken Run · Jun 2, 2015

Why stop at rent, I say lets cap the value of property …

deletebeepbeepbeep · Jun 2, 2015

My landlord increased the rent by 500 pounds, I moved out and the flat is still empty four months later :wanker:

.

Wanted to take all the deposit as well and the protection scheme awarded in full to me, reckon he is £4k down now and counting the greedy git.

looney · Jun 2, 2015

Its treatig the symptom and not the cause. If you want stable rents than choke of demand, ie control immigration.

yxee · Jun 2, 2015

Herr Tubthumper said:
If I was going to discuss housing issues...economists wouldn't be the first profession I'd turn to.

Does that not say more about you than them?

looney said:
Its treatig the symptom and not the cause. If you want stable rents than choke of demand, ie control immigration.

Or build more houses.

beorhthelm · Jun 2, 2015

Herr Tubthumper said:
Back to Berlin, the problem is fast rising rents. Surely a rent cap will overcome this problem?

it rather depends on the cause of the problem. if it is due to landlords required to improve standards for example, it may lead to stock going off the market. if its due to lack of stock, it could discourage investment. if population increase drives up demand it could mean lack of supply, so not addressing the issue of cheap accomodation where its wanted, it gets built elsewhere (in cheaper areas...). those are of course economic reasons, because its an problem of economics.

Deleted member 22389 · Jun 2, 2015

looney said:
Its treatig the symptom and not the cause. If you want stable rents than choke of demand, ie control immigration.

Very true, too many people and not enough homes driven in part by immigration. It's getting desperate down here when LDC are now talking about selling off the only car parks Peacehaven has to build new homes, and on top of this we have another 800+ additional homes to built in Newhaven. It's getting fing ridicolous.

People are beginning to get pissed off now. I think we can all agree we need new housing at affordable prices for local people, but we all know local people will the be the very last people that will benefit from these new homes, and on top of this nothing is being done to improve the local services to cope with these extra demands. Everything is being built in the wrong places.

Nibble · Jun 2, 2015

Nothing to do with immigration. Tory's won't allow more affordable houses to be built because the fewer properties there are, the more they can artificially raise the value of their own property portfolios. I think Labour were just as much to blame for the same thing.
Plenty of room to build more housing. Rich, influential, multi property owners screwing over the average citizen to make a fast buck. Disgraceful.

nicko31 · Jun 2, 2015

Renovated properties and new builds are exempt.

Berlin is still one of the most undervalued quality real estate on the planet, despite the rent cap prices are only going one way. Buying a property there on a cheap Euro with a 10 year fixed mortgage at 1.5% is a no-brainer

In contrast much of the UK looks fully valued

Herr Tubthumper · Jun 2, 2015

beorhthelm said:
it rather depends on the cause of the problem. if it is due to landlords required to improve standards for example, it may lead to stock going off the market. if its due to lack of stock, it could discourage investment. if population increase drives up demand it could mean lack of supply, so not addressing the issue of cheap accomodation where its wanted, it gets built elsewhere (in cheaper areas...). those are of course economic reasons, because its an problem of economics.

One the reasons I like Germany is because it doesn't judge everything on purely economic terms, as you have done here. You'd make an awful German...but I'm guessing you're not the fussed? :smile:

midnight_rendezvous · Jun 2, 2015

looney said:
Its treatig the symptom and not the cause. If you want stable rents than choke of demand, ie control immigration.

Whilst I agree in part with the principle of more people + not enough housing = higher rent, surely the cause is greedy rip off landlords and not those who probably have little in comparison. Housing is one of those topics that often shifts the blame onto immigrantion instead of looking at the real problem. Rents are going up whilst wages are stagnating. Some of those in power won't vote for a living wage or a rent cap as they've got vested interests seeing a fair number of them are landlords themselves. That is the cause in my opinion.

Herr Tubthumper · Jun 2, 2015

nicko31 said:
Renovated properties and new builds are exempt.

Berlin is still one of the most undervalued quality real estate on the planet, despite the rent cap prices are only going one way. Buying a property there on a cheap Euro with a 10 year fixed mortgage at 1.5% is a no-brainer

In contrast much of the UK looks fully valued

There are separate rules for renovation work, only a percentage can be passed onto the tenant.

Herr Tubthumper · Jun 2, 2015

nicko31 said:
Renovated properties and new builds are exempt.

Berlin is still one of the most undervalued quality real estate on the planet, despite the rent cap prices are only going one way. Buying a property there on a cheap Euro with a 10 year fixed mortgage at 1.5% is a no-brainer

In contrast much of the UK looks fully valued

You can get 1.3% 10 year fixes from some banks.

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