18.06.2025 • 5 min. reading time
Content of this article
The rent freeze remains a key instrument of housing policy in Germany. In view of rising rents in many German cities, the federal government has decided to extend the regulation until at least December 31, 2029. The aim is to prevent excessive rents for new lettings and to further strengthen tenant protection in regions with a tight housing market.
But what does this extension mean in concrete terms? Which regulations apply, where is the Rent Control 2025 active - and what exceptions must be observed?
What is the rent freeze? Legal basis and objective
The rent freeze was introduced in 2015 with the Tenancy Law Amendment Act (Section 556d-g BGB). It is aimed at landlords of existing apartments in regions with particularly high demand for housing. The regulation limits the rent level when re-letting an apartment.
Central legal rule:
- The rent for re-letting may not be more than10% above the localcomparative rent.
This comparative rent is generally determined by the local rent index. The aim of the measure is to curb rapid rent increases for new contracts without affecting existing tenancies.
Which apartments are subject to the rent freeze - and which are not?
The rent freeze only applies in certain regions that have been defined by the federal states as a tight housing market by statutory order. In addition, not all tenancies are covered. There are clear legal exceptions, including
Exceptions to the rent freeze:
- New builds: Apartments that were first used and rented out after October 1, 2014 are exempt from the regulation.
- Comprehensive modernization: If at least one third of the new construction costs were invested in renovation, the rent freeze does not apply.
- Previous rent above the brake: If the previous tenant has already paid a higher rent, this may continue to be charged.
- Graduated rent and index-linked rent: These rental agreements are subject to separate regulations and are only partially affected.
Extension of the rent freeze until the end of 2029 - political background
The extension of the rent freeze until 2029 was decided by the federal government in 2024. This was justified by the ongoing tense situation on the housing market in many German cities.
According to the Federal Ministry of Justice, there is a considerable shortage of affordable housing in many cities despite new construction campaigns. Cities such as Berlin, Munich, Cologne, Frankfurt, Leipzig and Stuttgart continue to record above-average rent increases - especially for new rentals.
In which cities and federal states does the rent freeze apply?
The rent freeze does not apply nationwide, but only in certain cities and municipalities that have been designated as a "tight housing market" by state ordinance. An overview as an example:
- North Rhine-Westphalia (NRW): Cologne, Düsseldorf, Bonn, Münster, Aachen and others.
- Bavaria: Munich, Nuremberg, Regensburg, Würzburg, Erlangen
- Berlin: nationwide
- Hesse: Frankfurt am Main, Wiesbaden, Darmstadt
- Hamburg: entire city area
- Baden-Württemberg: Stuttgart, Heidelberg, Freiburg, Tübingen and others
- Saxony: Leipzig, Dresden
The respective period of validity of the ordinances varies and is regularly reviewed and adjusted. Tenants and landlords should obtain information directly from the relevant state authorities or on official websites.
Information obligation for landlords - legal consequences of violations
Since the reform of the rent freeze in 2019, landlords have been subject to strict transparency obligations. If a legal exception applies - for example due to extensive modernization - this must be communicated to the tenant in writing before the contract is concluded (Section 556g BGB).
Consequences of non-compliance:
- If the duty to inform is breached, the tenant can reclaim the overpaid rent retroactively for up to 30 months.
- Violations discovered at a later date can also lead to legal disputes and repayments.
It is therefore advisable for landlords to carry out a legally compliant check of the rent freeze and the exceptions before every new letting.
Tenants' rights - how to complain about a rent that is too high
Tenants who believe that their rent is in breach of the Rent Control have legal rights. It is important to complain about the rent in the correct form.
Procedure for tenants:
- Determine the comparative rent - e.g. using the city's rent index.
- Submita written complaint to the landlord (preferably with specific reasons).
- Demandrepayment of the excessive rent (with the help of a lawyer if necessary).
Many cities and consumer protection centers offer online tools for rent checks or free advice.
Effects on the real estate market - criticism and praise
The rent freeze is politically controversial. Critics argue that it inhibits investment incentives and slows down new construction. Many landlords consider the regulation to be bureaucratic and unfair.
Arguments from critics:
- Interference with contractual freedom
- Less return on letting
- Shift to purchase markets
Arguments from supporters:
- Socially just tenancies
- Protection against displacement of low-income households
- Relief in particularly expensive cities
In practice, it is clear that the rent freeze is not a panacea, but an important building block in the housing policy toolbox.
Conclusion: The rent freeze remains an important pillar of tenant protection.
The extension of the rent freeze until the end of 2029 shows that The state wants to continue to actively counter the rise in rents in cities with a housing shortage. For tenants, this means more security for new lettings, but for landlords it also means a higher list of obligations.
Anyone wishing to let or rent a new apartment should definitely familiarize themselves with the rent freeze, its regional areas of application, the legal exceptions and the current rent indexes - in order to avoid legal and financial risks.
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