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The consequences of the Berlin rent cap ruling

The Berlin rent cap was declared inadmissible. We explain what this means for tenants and property owners.
Dr. Chris Mulder

Dr. Chris is a former Senior Economist and Manager at the IMF and The World Bank. He is a Hypofriend Co-founder.

Published on Apr 16, 2021 Published on Apr 16, 2021 . Updated a year ago

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Dr. Chris is a former Senior Economist and Manager at the IMF and The World Bank. He is a Hypofriend Co-founder.

Berlin, 16. April 2021 --- The decision of the Second Senate of the Federal Constitutional Court on April 15, 2021, ruled that the Law on Rent Restrictions in the Housing Sector in Berlin (MietenWoG Bln) is not compatible with the Basic Law. Or to put it another way: The law violates the Basic Law. The state of Berlin is not allowed to limit rent levels in the city with its own law. The legislative power lies with the federal government.