Mietendeckel

Mietendeckel is the term used for a rent cap policy implemented by the German state of Berlin in 2020. The measure aimed to curb rising housing costs by freezing rents for a large portion of Berlin’s rental stock and by restricting rent increases over time. The law primarily applied to existing rental contracts for many apartments built before a certain date; new constructions and some housing types were exempt. Under the scheme, rents could not exceed the level in effect at the start of 2020, and increases in subsequent leases were limited to the cap set by the law. The intent was to make rental housing more affordable and predictable in Berlin, a city known for rapid rent growth.

The Berlin Mietendeckel was passed by the state parliament (Abgeordnetenhaus) in 2020 and entered into force on February 23, 2020. It was implemented at the state level and operated alongside federal housing regulations, such as the Mietpreisbremse.

In April 2021, the Federal Constitutional Court ruled the law unconstitutional, finding that rent regulation is a matter for the federal government rather than the states. As a consequence, the Mietendeckel was struck down, effectively void from the outset. Rents could be adjusted to reflect market levels, and tenants previously paying below the cap were not protected by the state law going forward. The ruling underscored tensions between state and federal competences in Germany’s housing policy and had a lasting impact on subsequent policy discussions.