Ines Schwerdtner: Left leader admits that rents can rise despite socialization

With its central promise to alleviate the housing shortage in Berlin by corporatizing large corporations and reducing rents, the Left was able to score points in the Berlin House of Representatives election. As the strongest force in the capital, the party could soon have Elif Eralp as the governing mayor.

Left leader Ines Schwerdtner does not want to promise that rents will fall as a result of the socialization plans. In an interview with presenter Sarah Bosetti on the 3sat show “Bosetti Late Night,” when asked, Schwerdtner did not want to guarantee that rents would not have to be increased further as a result of socialization.

»Elif Eralp said that she would cap the state's own rents (…). They can be increased to a maximum of two percent,” said Schwerdtner. She pointed out that this value was far below the increases of six percent that the Vonovia group had recently added.

»We have to see very clearly that Vonovia will continue to increase rents; if they are in public hands they will not rise as much. That means we will have permanently affordable housing in relation to that owned by Vonovia.«

Bosetti then asked whether Schwerdtner didn't want to lower the rents at all. "I would very much like to reduce the rents, but you are asking about the seriousness of the bill." This also includes the maintenance of the socialized apartments. It is unclear what condition the apartments are in. "The tenants who come to us report mold on the walls, they report holes in the stairwells where children can fall through."

The Left is now accused of having at least implicitly promised rent reductions through the socialization plans. For example, the Berlin “Tagesspiegel” stated that left-wing politicians had repeatedly linked socialization plans with falling rents.

Economics professor Harald Simons, who was also invited to the show, complained that he had only now learned that rent reductions were not actually planned by the Left.

»But the rent should remain as high as it is now. (…) This is actually new, I was surprised to see that in the exploratory paper," said Simons. However, he believes that since the referendum in 2021 and also in the current debate, it is generally assumed that socialization will take place and that rents will then be reduced. Namely about the current profits of the housing companies - in Vonovia's case one billion euros.

“But the question arises: if the rent is not to be reduced, but Vonovia and the others make a billion in profit, will you pocket it?” Simons asked the left-wing politician. Schwerdtner replied that the surplus would be used to renovate the property. »If we could lower, we would do so immediately. I just don’t want to talk nonsense to people here.”

The Berlin Left had promised falling rents in its program for the House of Representatives election. »The apartments owned by large housing companies, which are the subject of the referendum, are a matter of public responsibility. So that rents fall, houses are maintained and people can stay," it says. However, restrictions are also formulated.

Accordingly, there should be a rent cap for the state-owned housing companies (LWU) and a one-year rent freeze there. “In the Housing Supply Act, we will then stipulate that rent increases will be limited to a maximum of one percent per year.” Excessive rents that are more than 20 percent above the typical local rent would be reduced. Re-lettings would have to be at a price below the local comparative rent.

In the exploratory paper negotiated with the SPD and the Greens after the election, however, there is talk of rent increases “of a maximum of two percent per year” for the LWU. The LWU's ability to invest should be guaranteed.