The rental price brake does not violate the Basic Law. This was decided by the Federal Constitutional Court and sees the new regulations in conformity with the property guarantee, with the freedom of contract and the general principle of equality.
The highest German court therefore rejected a constitutional complaint. Corresponding submissions of the district court Berlin declared it inadmissible. The district court had classified the rental price brake as unconstitutional and therefore called the Federal Constitutional Court.
Rental price brake "in the public interest"
The competent chamber of the Constitutional Court did not follow this assessment. "It is in the public interest to counteract the displacement of less efficient populations from highly sought-after neighborhoods," said the constitutional judges. The regulation of the rent is also constitutionally suitable to achieve this goal.
The rental price brake was first introduced in June 2015 in Berlin. In areas with a "tight housing market", it covers the costs of new or re-lettings to the level of the local comparative rent plus ten percent.