Mietpreisbremse

The population’s access to housing and the affordability of housing expenses are classical focus points of the academic and political discussion regarding the development of the Social Market Economy in Germany. Due to a comparatively high number (close to 23 million) of tenants in Germany, the legislator has not seldomly opted to steer the rent price development via rent regulations. The author examines the economic ramifications and regulatory implications of such governmental rent regulation and discusses its compliance with German Constitutional and Private law. Along these lines, a new concept is proposed as to how limitations to the freedom of contract may or may not be justified from a Private law perspective. Drawing on his findings, the author provides a comprehensive analysis of the „Mietpreisbremse“-legislation introduced in 2015, in which he, inter alia, gives an assessment regarding the constitutionality of the legislation.