The Left Party filed an inquiry with the German government on September 14, 2026. It asked how often authorities punish rent-gouging under German law.
The answer will show how much protection German tenants actually have against rent-gouging.
What Counts As Rent-Gouging Under German Law?
Rent-gouging (Mietwucher) is illegal under German law. Section 5 of the Economic Crimes Act (WiStrG) bans unreasonably high rent.
Proving a violation means showing the rent tops the Vergleichsmiete (comparative rent). The threshold is about 20% above the Vergleichsmiete.
Meeting that burden of proof is difficult in practice, so local authorities rarely pursue these cases.
The Mietpreisbremse works differently. It applies only in tight housing markets.
New-lease rents in tight housing markets cannot exceed 10% above the Vergleichsmiete. Tenants must challenge an overcharge in writing to get a refund.
The Evidence Behind the Left Party’s Push For Rent-Gouging Reform
The Left Party built its case for reforming the rent-gouging law with an online tool. It let tenants report suspected rent-gouging over the past year.
About 220,000 people submitted reports on rent-gouging. Two-thirds of the reported cases exceeded the Vergleichsmiete by more than 20%.
The 20% threshold should trigger a WiStrG violation automatically. Yet the Left Party’s own bill to fix the law failed.
The Left Party’s bill would have lowered the burden of proof. It would also have raised penalties for rent-gouging.
The Bundestag voted it down on November 6, 2025. The vote was 131 in favor and 440 against.
Why Is the Government Waiting on Rent-Gouging Reform?
The governing coalition of CDU/CSU and SPD has not ruled out reforming the rent-gouging law. But it wants its own review first.
Justice Minister Stefanie Hubig (SPD) set up an expert Mietrechtskommission. It must recommend penalties for Mietpreisbremse violations.
The Mietrechtskommission’s findings are due by December 31, 2026. Until then, no new enforcement rules apply. Any change depends on the Mietrechtskommission’s recommendations.
NOTE: The Left Party’s inquiry is a parliamentary inquiry, not a law change. The government has not yet responded.
