Berlin has become the first city in Germany in which effective legislation has come into force in a bid to put the breaks on some of the fastest rising rents in Europe.  From Monday, landlords in the capital will be barred from increasing rents by more than 10% above the local average. Such controls were already in place for existing tenants but have now been extended to new contracts.

“The rent ceiling is very important for Berlin because the difference between the rent paid in existing contracts and new contracts is so high,” said Reiner Wild, managing director of the Berlin Tenants’ Association. “The other problem is that we have 40,000 more inhabitants per year. Because of this situation the housing market is very strong.”

Berlin is pioneering the rent cap after the national parliament approved the law, aimed at areas with housing shortages, in March…

 http://www.theguardian.com/world/2015/jun/01/rent-cap-legislation-in-force-berlin-germany