Germany plans to extend rent controls known as the Mietpreisbremse until 2029, but columnist Brian Melican argues this may exacerbate the issues rather than alleviate them. He highlights the continuous rise in rents, which have increased nearly 40% in parts of Hamburg, despite the introduction of these controls ten years prior. The current rent controls only apply to new contracts and contain loopholes that allow landlords to exploit the system, essentially minimizing their effectiveness. Melican suggests that rather than helping renters, these regulations may contribute to the ongoing dysfunction in the housing market.
Rent controls only apply to new rental contracts and come with enough loopholes and exceptions that landlords can easily find ways around them, fueling further price increases.
The Mietpreisbremse may be doing more harm than good, as observed over two decades of a dysfunctional housing market in Germany, where rent rises have continued despite controls.
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