German rent-control law violates constitution, court rules

One of the prestige projects of Angela Merkel’s outgoing coalition government has been thrown into doubt after a Berlin court ruled that a recently introduced rent-control law violates Germany’s constitution.

The so-called Mietpreisbremse or “rental price brake” was introduced two years ago with the aim of barring landlords in property hotspots from increasing rents by more than 10% above a local benchmark. In June 2015 Berlin became the first German state to implement the new regulation. Read more HERE.