Real Estate

SPD leadership suggests new tax

The SPD chairmen Saskia Esken and Norbert Walter-Borjans have called for an offensive against high rents. In doing so, they suggested a new tax that should apply to a specific group.

In view of the explosion in rents in the metropolitan areas, the SPD leadership has brought up a new tax for landowners. “In addition to expanding municipal housing, we should also skim off the extreme increase in the value of land in Germany – for example with a land increase tax,” said party leader Norbert Walter-Borjans to the newspapers of the Funke media group. As a short-term measure, the housing benefit should be increased.

Sympathy for a rental cover

“It just can’t be that people spend 40 or 50 percent of their income on rent,” added Walter-Borjans. He also showed sympathy for a rent cap, as decided by the Berlin Senate. “Basically, a cap on rents can be a useful instrument,” said the former finance minister of North Rhine-Westphalia. “Rent increases should at best be based on the rate of price increases – and not on the speculation-driven increase in property prices.”

Co-chair Saskia Esken called it “an absurdity that people should become homeless because they can no longer pay their rent and that families cannot find affordable housing”. The best remedy, however, is more apartments. Esken proclaimed a decade for social and affordable housing. By 2030, 1.5 million new apartments should be created – “especially where the housing market is extremely tight”.

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