German top court throws out Berlin's disputed rent cap

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Germany's highest court said that a policy to freeze rents in Berlin for five years to combat soaring housing costs was unlawful in a ruling.

The highest court's ruling to throw out Berlin's rent cap is a blow to millions of tenants.BERLIN - Germany's highest court said that a policy to freeze rents in Berlin for five years to combat soaring housing costs was unlawful in a ruling published on Thursday.

The tribunal ruled in favour of MPs from the centre-right Christian Democratic Union and the pro-business Free Democrats, who are both in opposition in Berlin. The rent freeze, passed by Berlin's legislature in January 2020, was a flagship policy of the local governing coalition of the centre-left Social Democrats, the Greens and the far-left Linke parties.

 

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