The Left Party Calls for an Extended Rent Control Measure in Saxony

The Left Party in the Saxon State Parliament is advocating for an extension of the rent control measures for Dresden and Leipzig. In a motion, the Left Party caucus calls for extending the regulations through the end of 2029. Otherwise, both measures are set to expire at the end of June 2027. In addition, their scope is to be expanded to include other municipalities with tight housing markets in the areas surrounding the major cities, according to The Left. A new independent agency is to independently verify whether the rules are being followed.

Rent cap aims to prevent rent gouging

“The rent cap is currently the only measure that limits price increases when apartments are re-rented. Accordingly, landlords may charge no more than ten percent above the local comparative rent,” explained Member of Parliament Juliane Nagel. If this measure were to be repealed, landlords could raise rents in new leases up to the threshold at which “exorbitant rents” would apply. This would also drive up local rent levels, meaning that rents for existing leases could also be raised more sharply.

Asking rents in Leipzig have nearly doubled within ten years

Nagel pointed out that a 15-percent cap applies in Saxony. Accordingly, rents may rise by a maximum of 15 percent within three years. “We want to preserve this rule as well. In Leipzig, the average asking rent was most recently 9.26 euros (excluding utilities) per square meter—within ten years, it has thus nearly doubled compared to the initial value of 5.49 euros,” said Nagel. Dresden and, increasingly, the surrounding areas of both cities are also affected, and the housing market beyond the city limits is equally strained.

No one should spend more than 30 percent of their income on rent

“The motto ‘Build, build, build’ alone isn’t enough: new construction doesn’t prevent rent increases in existing leases. That’s why rent control measures must be maintained and expanded,” argued Nagel, referring to her party’s guiding principle: “No one should have to spend more than 30 percent of their monthly income on rent. In Leipzig in 2023, nearly one-fifth of tenant households had to spend more than 40 percent.”

The Left calls for an independent regulatory body

“We want to expand the rent cap and lower the cap limit. The burden of oversight must no longer fall on the shoulders of tenant households,” Nagel emphasized. People who are happy to have found an apartment are unlikely to want to get into a dispute with their landlord. That is why an external agency at the state level must be able to independently review housing offers and impose sanctions.