The bombshell announcement was first reported by Bild on Tuesday — Vonovia had issued thousands of rent increase notices, exploiting a clause in the state’s rent brake (Mitetpreisbremse) that permits rent hikes of up to 15 percent over three years. 

In letters allegedly sent out to around 40,000 Berlin residents, the large-scale landlord revealed that they would be implementing a huge jump in rents over the coming years, breaking a pledge that they had made to the Berlin Housing Alliance in 2022.

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The alliance, which includes politicians, housing companies like Vonovia, and various tenants’ associations, had agreed on a cap of 11 percent rent increase over three years. This was in anticipation of a federal cap that never came to fruition.

Slamming the upcoming rent hikes, SPD General Secretary Kevin Kühnert said the move could partly be blamed on the liberal FDP which blocked the 11 percent rent cap. 

“It makes me angry when our coalition fights for more net income for millions of employees, while the FDP simultaneously allows this income to be eaten up by huge rent increases,” Kühnert said.

He added that the debate in the coalition been raging for two and a half years – since the proposal was added to the traffic light’s coalition agreement in 2021. 

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In response to Vonovia’s plans for 15 percent rent hikes, the Berlin Senate initially proposed compensation for affected tenants, but nothing has materialised so far. 

Vonovia, which has recently returned to profitability, cited economic necessity for the 15 percent rent increase.

The Berlin Housing Alliance has recently agreed to cap rents at 30 percent of household net income for private renters – three percent higher than the 27 percent cap in place for those in public housing.

Speaking to Der Spiegel on Tuesday, Berlin housing senator Christian Gaebler said he would investigate whether the 27 percent cap could be extended to all providers, including private ones. He said he supported the idea as a means to support people genuinely in need. 

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“A more targeted approach to tenant protection is understandable, especially for those who depend on every euro,” he said, adding that other tenant protection measures could also be discussed within the alliance.