Going into the basement is probably even less popular with many than usual. Natural gas, heating oil, electricity – everything has become much more expensive since Russia invaded the Ukraine. A look at the counters does not bode well. The real shock for millions of tenants in the country will come in just over a year: when in the second half of 2023, sometimes heavy back payments are due.
The big landlords are therefore sounding the alarm. “What is in front of all households in Germany is an incredible burden,” warned the President of the industry association GdW, Axel Gedaschko on Thursday. A number of households would not be able to bear the burden. The unrestrained increase in energy costs could not only put millions of people in need, but possibly also ruin their landlords. The GdW primarily represents cooperatives and municipal housing companies, but also listed corporations such as Vonovia. Together they represent around 30 percent of rental apartments in Germany.
These companies would have to pre-finance the costs for heating and hot water because the monthly utility bills no longer covered the actual expenses. That alone is already expensive, and there is also the risk that many bills to the tenants will ultimately remain unpaid. “We mainly rent to people who don’t have that much income,” said Gedaschko. Investments in new buildings and renovations would be practically impossible.
The federal government is also expecting significant burdens for citizens and has therefore already launched aid. Chancellor Olaf Scholz (SPD) recently spoke of “social explosives” if the heating bill rose by hundreds of euros. Economics Minister Robert Habeck (Greens) also said that citizens would have to prepare for an expensive winter. The price increases would be in the four-digit range per household. “And that can also be a monthly income for a family.”
Heating costs could rise between 70 and 200 percent
According to a calculation by the GdW, spending on household energy per household and month rose by an average of 37 percent up to May alone. By the end of the year, the bill could – depending on the scenario – be between a good 70 and almost 200 percent higher than in 2021. For a four-person household, this would mean that instead of an average of 213 euros per month, it would then cost between 364 and 635 euros for heating , hot water and electricity would have to be taken into account.
“In this emergency situation, the state must live up to its social responsibility,” Gedaschko demanded. Among other things, he brought up help from the state-owned KfW bank for pre-financing heating costs, an adjustment to insolvency law for housing companies and a trust fund from which landlords could get back part of the energy costs of economically weak tenants.
At the same time, Gedaschko criticized the plans of the traffic light coalition for stricter specifications for new buildings: photovoltaics and efficient heating systems with heat pumps are basically the right way. However, there was a lack of materials and craftsmen to cope with the planned solar roof obligation and the planned minimum share of 65 percent renewable energies for heating at acceptable costs. For example, solar collectors have become 23 percent more expensive within a year, and heat pumps still have a surcharge of six percent. “Anyone can build expensively,” said Gedaschko. It’s about creating affordable housing.
In order to relieve both tenants and landlords, the GdW also calls for the CO₂ price to be suspended. The levy has been due since last year. It is currently €30 per tonne of carbon dioxide emitted and could rise to as much as €55 by 2025. From next year, the surcharge will also be shared between landlords and tenants, depending on how efficient the building is. This should encourage owners to renovate their houses and tenants to save energy. In view of the enormously expensive energy, however, this is not necessary at all, said Gedaschko. Saving is in any case in the interest of all consumers. The state only earns additional money from the CO₂ price.