Sadiq’s Much-Loved Berlin Rent Control Experiment Ruled Unconstitutional

Berlin’s infamously disastrous rent control policy has been overturned by the country’s constitutional court, which considers the absurd policy incompatible with the country’s Basic Law. Declaring the law null and void, the court said the federal government had already passed laws to regulate the rental market, therefore no further action was needed by regional authorities. The states can only legislate so long as the federal government hasn’t made use of its powers.

The year-long legal fight and victory is also a blow to Sadiq Khan, who is using his mayoral re-election campaign to push for rent controls – over which he has no legal competence. In 2019 he announced his plans to bring them in during his second term, actively citing Berlin’s experiment. Last November it emerged the German capital’s cap had resulted in supply falling 41%, and demand rising 172%; five months on, the experiment is dead in the water. Khan will try to claim he has a mandate for rent controls when he is returned to office. He won’t and the policy would be a disaster, he should focus on building more homes…

mdi-tag-outline Rent Controls
mdi-account-multiple-outline Sadiq Khan
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