Rental price brake: Schachner warns of loss of job and market failure!

Rental price brake: Schachner warns of loss of job and market failure!

On August 27, 2025, Vice Chancellor Andreas Babler announced a new "rental price brake for free rents", which will be discussed as part of an important political initiative. René Schachner, residential building spokesman for the Freedom Economy, expresses severe concerns about this measure. He warns that the planned rental cover could have fatal effects on the housing market on half of the inflation. Schachner sees a threat to landlords and investors in this regulation, since it could possibly lead to an investment stop, a decline in new buildings and the neglect of existing residential stocks.

According to Schachner, the construction industry, the craft and various service companies are particularly affected. He emphasizes that the politics operated by Babler, which he criticizes as "Marxism in pure culture", endangers the jobs of thousands of people. The Freedom Economy therefore calls for a decisive no to government interventions in the housing market and pleads for framework conditions that strengthen private initiatives and enable new apartments.

Prospects of the rental price brake by 2029

In addition to these political debates, the extension of the applicable rental price brake is up to discussion by December 31, 2029. This regulation has been around for ten years now, but the hoped -for relief effect in tense housing markets is missing. The association of the real estate industry rejects the extension and criticizes the high bureaucratic burden and lack of relief for owners and landlords. Schachner and other critics warn that the rental price brake does not lead to falling rents, but increases the administrative effort and thus prevents the market's real relaxation.

Important aspects of the rental price brake are anchored in the civil code (Section 556d (2)), according to which the rental price brake only applies in designated areas and is intended to slow down rents. In the restoration of existing apartments, the permissible rent may be a maximum of 10 % above the local comparison rent. Newly built and extensively modernized apartments are excluded from the rental price limit. Connected caps allow rent increases in certain areas of a maximum of 15 % within three years.

Changes in housing and social reality

Despite all political discussions, the number of building permits and completions has been decreasing for years. This leads to a continued lack of new, affordable living space, which continues to be a central problem of living space policy. Affected politicians such as Kaßler therefore demand: "Building more and braking less" in order to effectively counter the lack of living space. Around 32 million people currently live in areas that are affected by the rental price brake or capping limits, which corresponds to around 38 % of the population.

The political and economic debates about the rental price brake illustrate the complex relationship between state requirements and the real needs of the rental companies and the housing industry. In view of the growing challenges on the housing market, further development is eagerly awaited. Schachner calls Vice Chancellor Babler to take responsibility for the possible negative consequences and to take consequences.

The urgent questions of how the rental price brake can really lead to relief and which framework conditions are necessary for sustainable living space policy are of great importance in the political discourse. Both the views of the supporters and the critics have to find space in future discussions to find solutions that do justice to everyone involved.