German parliament passes law to cap rent increases

Germany’s lower house of parliament has passed a law to limit rent rises in metropolitan areas to 10% above local averages when properties change hands, in a bid to stop tenants being priced out of the market.

Rents have shot up by as much as 30% or 40% since 2007 in cities such as Berlin, Hamburg, Munich and Frankfurt.

The rises have had a particularly big impact in Germany where nearly half the population lives in rented accommodation. Home ownership, at just 46%, is the second lowest in Europe after Switzerland.