Giffey wants to link rent to salary: Sounds good, but not well thought out – economy

Franziska Giffey would like to link rents in Berlin to residents’ incomes. That sounds good, but it is not well thought out, impractical and even dangerous.

comment by

Stephen Radomsky

You have to give Franziska Giffey one thing: her idea for an individual rent cap is original. The upper limit for rents in the capital should no longer be absolute, but should be based on the respective tenant, according to Berlin’s governing mayor. An apartment should be allowed to cost a maximum of 30 percent of the available household net. If you spend less, the rent could then go up; whoever pays more, on the other hand, would have to get a rent reduction. The whole thing should be checked by a “public rental price inspection agency”, but the tenants should enforce their claims themselves. That’s what the SPD politician now suggested in one go Interview with the daily mirror before.

source site