Rental price brake in Baden-Württemberg: Extension by the end of 2025!

Rental price brake in Baden-Württemberg: Extension by the end of 2025!

In Baden-Württemberg there are fresh news for tenants: On June 25, 2025, the state government has announced the extension of the rental price brake by December 31, 2025. Minister Nicole Razavi (CDU) announced the decision as part of a press release in order to create a temporary solution that further regulates rents in tense residential areas. Without this extension, the state regulation on the rental price brake would have expired at the end of June 2025, which would have left many residents in uncertain conditions. [Baden-wuerttemberg.de] (https://www.baden-wuerttemberg.de/de/service/Pressemitteigung/pid/land-verlaengert-Mietpreisbremse-ein-albes-jahr-jahr-jahr-jahr-jahre brake applies in 89 cities and municipalities, where about a third of the population lives.

Another important aspect of the new regulation is that the capping limit and the locking period are also extended by half a year. The capping limit states that inventory rents may increase by a maximum of 15% within three years, while the termination blocking period ensures that tenants are protected for five years when converting rental apartments. This is a significant advantage at a time when living space is very popular and many people may want to change their own.

security for tenants by the end of the year

The regulation on the rental price brake has had a major impact on the rental market in Baden-Württemberg since its introduction in November 2015. According to Tagesschau.de, landlords may not demand more than 10% over the local comparative rent. However, new buildings that were completed after October 1, 2014 and fully modernized apartments are excluded from this regulation.

The request as to whether these measures actually have rents under control is evaluated differently by experts. There are reports on possible attempts at bypass by landlords who want to predict on the regulations. How the political discussion about the rental price brake continues depends on the future design of the Civil Code (BGB). The federal government has now extended the authorization for the countries to the rental price brake by four years, but the exact execution remains unclear.

With the current changes, the state government hopes to reduce the pressure on the housing market and at the same time the tenant: to offer more security inside. The government's prudent action is shown in this step, which could help to ensure that not everything is mixed up during the transition phase by the end of 2025.