Germany pledges more housing benefits to low-income earners as property prices rise
The federal government is criticised for failing to provide adequate homes for needy citizens; grass-roots organisations estimate €6b needed annually to build social housing
The German federal government will offer low-income earners more generous housing benefit payments from 2020 onwards, the Editorialnetwork Germany (RND) reported on Friday.
RND cited a draft resolution for the housing summit held in the chancellery in Berlin on Friday, in which the government will reform the current benefit payment system in response to growing concern over a national shortage of affordable housing.
“This way the alleviating effect of housing benefits can be sustained and low-income households can be supported in meeting the costs of housing”, the document read.
Additionally, the federal government is reportedly planning changes to rental law to prevent steep rises in the rates charged by landlords and to improve tax incentives for the construction of new apartments.
The measures outlined in the summit draft resolution are part of a wider “housing space offensive” recently announced by the “grand coalition” formed by the German Social Democrats (SPD), Christian Democratic Union (CDU) and Christian Social Union (CSU).
The summit was attended by Chancellor Angela Merkel (CDU), interior minister Horst Seehofer (CSU), finance minister Olaf Scholz (SPD), economy minister Peter Altmaier (CDU) and justice minister Katarina Barley (SPD), as well as representatives of state governments, municipal authorities and rental associations.
