- More households with housing finance - DGB calls for a rent-price brake
In light of the rising number of housing allowance recipients in Schleswig-Holstein, the German Trade Union Confederation (DGB) has called for more initiatives to combat rising rents. "We need more measures to permanently combat the increase in rents," said DGB North's chief executive, Laura Pooth.
All existing instruments, such as the rent brake, must be utilized. "Above all, however, much more needs to be invested in long-term, purpose-bound social housing," said Pooth. The introduction of the new non-profit housing status is a step in this direction. However, municipal housing associations and cooperatives must also be supported more strongly at the same time.
Number of households receiving housing allowance increases
At the end of 2023, 44,055 households in Schleswig-Holstein received housing allowance. Compared to the previous year, this is an increase of 77 percent, as reported by the Statistics North. The increase is mainly due to changes in housing allowance law, which has expanded the circle of housing allowance beneficiaries.
The number of households supported by housing allowance consisting of employed persons increased by 72 percent between 2022 and 2023 to 18,130. For households led by non-employed persons - such as retirees, students, and unemployed - there was an increase of 81 percent to 25,925.
Housing allowance is not only granted to tenants, but also to owners in financially straitened circumstances. However, the majority of recipients are tenants. On average, the subsidy amounted to 302 euros per month at the end of 2023, which was 106 euros or 54 percent more than a year earlier.
To effectively address the rising costs of rent for these households, it's crucial to maximize the use of the existing rent brake. ("All existing instruments, such as the rent brake, must be utilized.") Moreover, there's a pressing need for substantial investments in long-term social housing to alleviate the issue. ("Above all, however, much more needs to be invested in long-term, purpose-bound social housing")
