The Senate of the State of Berlin asked GSK Stockmann to submit an expert opinion on the constitutionality of the “rent cap” it plans to make state law.
The “bill on the revision of legal provisions on rent limitation in Berlin” (Berliner MietenWoG) is the subject of controversial discussions in Berlin and throughout Germany. Professor Ulrich Battis (Humboldt University), Of Counsel at GSK Stockmann, analysed the bill’s constitutionality on behalf of the State of Berlin (Senate).
The report found that the so-called rent cap – in particular the envisaged regulations on limiting and reducing rent – is largely unconstitutional. According to the assessment, the only viable part of the bill is the five-year rent freeze, if it is embedded in a coherent State concept aimed at a more balanced housing market.
Advisers of the State of Berlin: Ulrich Battis, (Of Counsel, author of the expert opinion), Jan Hennig (Public, lead), Jan Kehrberg (Real Estate Project Development), Rainer Stockmann and Olaf Schmechel (both Real Estate Investments and Asset Management)