Berlin urged to freeze rents so it does not ‘end up like London’

A PROPOSED rent freeze in Berlin has received official backing, with the German finance minister warning that “we don’t want to end up like London”.

Olaf Scholz, who is also vice-chancellor in Angela Merkel’s coalition government, voiced support for plans to block landlords from increasing rent on residential properties for five years.

“If we don’t want to end up like London, where even lawyers and doctors have to live with flatmates, then we have to do something about it,” Mr Scholz told Frankfurter Allgemeine Zeitung newspaper.

Berliners have revelled in being “poor but sexy”, in the words of a former mayor, but that image is increasingly at odds with reality. Rents have risen rapidly as Berlin’s booming economy has attracted people from across Europe, and locals have protested at being priced out.

Measures that the regional government intends to introduce next week would freeze residential rents for five years. The Haus & Grund landlords’ association has advised members to increase rents by 15 per cent — the maximum permitted — before June 18.

Berlin rents lag those in Munich and Frankfurt, but they have risen faster than elsewhere in Germany in recent years. A typical one-bedroom flat costs €990 (£880) a month, compared with £1,550 a month in London, according to European Commission figures.

The Berlin authorities have resisted more extreme proposals, such as to expropriate flats for council housing.