Vonovia: “The market must be regulated” – landlords are calling for reform of tenancy legislation | EUROtoday

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DAccording to 2 of a very powerful landlords in Germany, German tenancy legislation must be reformed. The present authorized laws have adverse penalties for the rental market and new buildings, complained the top of the Dax group Vonovia, Rolf Buch, and the CEO of the biggest municipal landlord Saga from Hamburg, Thomas Krebs, within the “Süddeutsche Zeitung”.

The query arises as to “who needs protection and cheap rents and who pays too little compared to their ability to pay,” mentioned Buch. “The rental market needs to be regulated, nobody wants London conditions.” But issues can not proceed as they’re now – particularly in view of the disaster in housing development. Only a part of the market must be protected: “In the case of cheap apartments, it is necessary that they remain cheap,” mentioned Buch. “Apartments like this that tradesmen, tram drivers or firefighters can afford. Expensive apartments don’t need protection.”

Saga boss requires modifications to the foundations for publicly funded housing

Saga boss Krebs advocated altering the foundations for publicly backed housing: “After five years, we should ask tenants to provide voluntary information about their income and the number of residents.” This would stop backed and due to this fact low-cost flats be completely occupied, even when the necessities now not exist. If that’s the case, “the rent should be adjusted.”

The giant variety of authorities interventions at the moment are having adverse penalties in the marketplace, mentioned Buch. In Berlin, for instance, the lease cap “led to a legal and an illegal black market”: the variety of sublet or furnished flats has risen quickly, and landlords usually now not have entry to their very own low-cost flats, particularly in good areas. “Unfortunately you have to take note of that, and that annoys me,” mentioned Krebs.

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Vonovia is the biggest personal landlord in Europe with virtually 550,000 flats in Germany, Sweden and Austria. In this nation alone, the DAX group has virtually 490,000 flats. The saga not too long ago had virtually 140,000 flats in Hamburg.