FRANKFURT (Reuters) - Berlin’s city government plans to cap rents at 7.97 euros ($8.88) per square meter per month as part of a rent freeze agreed earlier this year, newspaper Tagesspiegel reported, citing a draft law.
Katrin Lompscher, Berlin’s Senator for Urban Development, plans to apply the cap to flats built until 2013, the report said, adding flats built from 2014 would be exempted.
The draft is still subject to discussions and could still change, the report said.
The Senate will prepare a bill to be sent to the city’s parliament by Oct. 15. It is intended to take effect in January.
Berlin’s city government in June decided to freeze rents for five years, heeding complaints from residents that their once famously affordable city was pricing them out.
Reporting by Christoph Steitz; Editing by Sandra Maler
Our Standards: The Thomson Reuters Trust Principles.