Federal Minister of Construction Verena Hubertz (SPD) has proposed an additional tax for tenants with increased incomes in social housing. “In Hesse, for example, there is an inappropriate occupancy tax that requires a surcharge to be paid if income exceeds a threshold of needs,” the politician told the newspaper of the Funke media group. He thought it was a good idea.
Anyone wishing to move into social housing in Germany must show proof of income – but usually only at the time of moving in Hesse Renters have had to pay incorrect occupancy tax since 2016 if their income exceeds the legal limit during the rental period, for example due to getting a new job. Income must flow to social housing.
Social housing has almost halved since 2006
According to the German Tenants Association, the number of social housing units in Germany has almost halved since 2006. There are currently only about 1.1 million social housing units across the country, but more than eleven million renter households are entitled to a housing rights certificate – and social housing too.
Hubertz announced upcoming changes in social housing construction. “The federal and state governments will invest around 50 billion euros in social housing by 2029, as the federal states in general will invest more than double that at 23.5 billion euros.”
The minister recently supported stricter regulations when renting furnished apartments and criticized index rental prices. Hubertz referred to a commission of rent law experts set up by the Federal Ministry of Justice, which will develop proposals to regulate rents linked to inflation rates.
