- Saleh calls for more speed on socialization law
Berlin's SPD parliamentary group leader, Raed Saleh, is calling on the Senate to speed up the development of the planned expropriation framework law. The state needs a legal means to intervene in the housing market to regulate prices, Saleh told the German Press Agency. The recent announcements of rent increases of up to 15 percent by Vonovia and other companies once again highlight the urgency of this issue.
"Now we're seeing rent increases being announced by various large players in Berlin," said Saleh. Among them are those that once signed the alliance for affordable housing and have now effectively withdrawn from it.
"I don't think the state can just stand by and do nothing if it wants to take itself seriously and ultimately be taken seriously by the people of Berlin," Saleh said. He must ensure their rights are protected "by intervening to regulate prices." Since the federal legislature has not yet implemented any agreements for better protection, Berlin must clarify which instruments are feasible.
The Senate should present a timeline for the new law
"Therefore, I expect the Senate to now show us a timeline for when a corresponding draft law will be worked out," said Saleh. "If there is no proposal, we will still present a bill ourselves during this legislative period and present it to our coalition partner."
Recently, it was revealed that Vonovia, the largest private landlord in Berlin, has sent out thousands of rent increases. The company is using the legal option to increase rents by 15 percent within three years. However, in the 2022-founded Berlin Housing Alliance, which includes representatives from politics, housing companies like Vonovia, and associations, they agreed on a so-called cap of 11 percent in three years.
"I view this development with great concern because Berlin is a city of tenants," said Saleh regarding the rent increases. "We have a large proportion of tenants in Berlin, unlike other federal states." Unlike cities like London or Paris, many average earners can still afford to live in the city center. "I'm worried that many people will have to leave their homes due to excessive rent increases and can no longer afford to live in the city."
The project is in the coalition agreement
CDU and SPD agreed on an expropriation framework law in the coalition agreement. It is intended to set the framework for possible state interventions in the area of public services, which includes housing, energy, water, and healthcare, among others. The legislative plan is a consequence of the successful referendum for the expropriation of large housing companies in 2021.
Saleh said that a lot has been done to protect tenants at the state level. He mentioned the ban on the conversion of rental housing into owner-occupied housing, a rent moratorium, the limitation of rent increases, and the so-called affordability promise by the state-owned companies, which includes a cap on rent for lower-income households. "We've really pulled out all the stops." It's important that the federal government either passes a truly effective rent control law or allows the states to introduce a rent cap.
"Moreover, we still have an instrument at our disposal, agreed upon within the coalition. This is the Association Framework Act." However, this does not necessarily imply expropriations, but rather intervention possibilities for the state in light of the regulations in the Basic Law.
"The Basic Law guarantees the protection of property. This is a very high value for me. Protection of property is extremely important, also in our federal republican history," says Saleh. "However, our constitution also provides that property entails responsibilities. This means that one must fulfill their obligations. If this does not happen, the state has the duty to intervene in a regulated manner in the social market economy. There is no legally established right to unlimited profit maximization."
"The German Press Agency reported about Saleh's call for the Senate to provide a timeline for the expropriation framework law development."
" further emphasized that the Senate should present this timeline, as they agreed on an expropriation framework law in the coalition agreement with the CDU, which is meant to regulate state interventions in the housing market, among other public services."
