Property
Germany — Property: Rental Market
Germany's Mietpreisbremse (rent brake) caps new-lease rents at no more than 10% above the local reference rent (ortsübliche Vergleichsmiete) in officially designated 'tight housing market' regions — over 50% of German municipalities are expected to qualify by 2025 per the BBSR. The federal government extended the Mietpreisbremse until 2029. Notably, five states (Saxony-Anhalt, Lower Saxony, Saarland, Schleswig-Holstein, and Saxony) currently do not apply the Mietpreisbremse. A 2026 reform ('Mietrecht II', draft adopted 30 April 2026) further caps index-linked rent increases: where inflation exceeds 3% in a year, half of the excess above 3% is disregarded for rent-increase purposes.
VerifiedGovernment / official sourceMietpreisbremse (rent brake) legislation / BBSRLast reviewed: 2026-07-20
Key facts
- Mietpreisbremse caps new-lease rent at no more than 10% above the local reference rent (ortsübliche Vergleichsmiete) in designated 'tight market' regions.
- The Mietpreisbremse has been extended until 2029.
- Saxony-Anhalt, Lower Saxony, Saarland, Schleswig-Holstein, and Saxony currently do not apply the Mietpreisbremse.
- 2026 'Mietrecht II' reform caps index-linked rent increases — where inflation exceeds 3%/year, only half of the excess above 3% counts toward the increase.
- Tenants can demand repayment of rent charged in excess of the Mietpreisbremse cap.
Required documents
- Local reference rent (Mietspiegel) data for the specific municipality
Common mistakes
- Assuming the Mietpreisbremse applies uniformly nationwide — five states currently exempt themselves, and 'tight market' designation varies by municipality.
- Not checking the local Mietspiegel (rent index) before signing a lease, which is the reference point for determining if rent exceeds the legal cap.