Housing Policies for a Growing City

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1 Housing Policies for a Growing City Dr. Jochen Lang Head ofdepartment -IV Housing, New Construction, Urban Renewal, Socially Integrated City Senate Department for Urban Development and the Environment WürttembergischeStraße Berlin

2 Berlin - a polycentric city

3 Declaredgoal: Keep and strengthen the decentralised structure and the social mix

4 Population growth Thousand inhabitants Realentwicklung development mittlere Medium Variante variant (Forecast (Basis 2011) obere High variant Variante (Forecast (Basis 2011) 2011) untere Low variant Variante (Forecast (Basis 2011) 2011) Bev.vorausschätzung New forecast (Basis 2013) Demand for new construction: About new dwellings needed - per year for the next ten years (estimate based on medium variant). Real development (+ ca inhabitants in the last three years) already above high variant.

5 Population growth and pressure on the housing market Population growth Development of rent offers Inhabitants net rent per m² 8,50 8, , ,36 6, ,67 5,50 5,46 5,49 5,66 6, Quelle: Einwohnerregisterstatistik, Amt f. Statistik Berlin-Brandenburg Quelle: IBB Wohnungsmarktbericht, jeweils Q III

6 Structure of the housing stock Rented / Owner-occupied units 15% Rented Owner-occupied 85% Total ca. 1.9 Mio. Ownership structure rental housing 70,7% 17,5% 11,8% Municipal Cooperatives Private Total ca. 1.6Mio. 68% 26% Ownership structure social housing 6% Municipal Cooperatives Total ca Private Source: IBB Housing Market Report 2014

7 Development of the social housing stock (Forecast)

8 Berlin is using all instruments available in order to 1. expand supply through new construction 2. counteract the decline of the number of rent-controlled flats 3. adequately regulate the housing stock

9 Facilitate and support new construction Better coordination and faster permission processes: Central co-ordination office for new construction at the Senate Department for Urban Development for all actors of the housing market ( Wohnungsbauleitstelle ) Cooperation agreement with districts on quicker processing of building applications Alliance for new construction with the associations of the real estate and construction industry with the boroughs for more efficient permission processes New construction by municipal housing companies Provide buildable plots for (1) municipal housing companies (2) refugee housing (3) cooperatives (4) convincing concepts

10 New affordable housing Social housing subsidy programme Expansion from to flats per year planned for the next budget period Standardised agreements on the construction of social infrastructure and affordable housing in land-use planning processes ( Urban Development Contracts ) Building competition experimental cost-efficient construction 30 Mio. for 500 new flats

11 Construction and building permits Dwellings completed Building permits issued

12 All regulatory instruments available are applied Law against inappropriate use of real estate assigned to housing for commercial use ("Zweckentfremdungsverbot ) Restricted termination of rental contracts for the private use of the new owner after flat is sold (10-year transition period) ( Kündigungsschutzklausel ) Transformation of rented flats into owner-occupied flats or extensive modernisation is subject to prior permission of the borough authorities in certain areas under social preservation statutes ( Erhaltungssatzung, Umwandlungsverordnung ) Decreased margin for rent increases within existing contracts ( Kappungsgrenze ) Fixed margin for rent increases for new contracts ( Mietpreisbremse ) Alliance for Social Housing Policies and Affordable Rents with the municipal housing companies on rents and tenant structure More flexibility with welfare payments for rents of the elderly and handicapped

13 Thank you for your attention! 13

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