Vice-Chancellor Advocates for Swifter and Extensive Construction under New Legislative Framework - Legislation Spurs University Leader to Enhance Construction Pace and Quantity
Deputy Chancellor and Finance Minister, Lars Klingbeil, is optimistic about the upcoming fast-track housing construction law, slated to be approved by the federal cabinet on Wednesday. "This law will enable faster and more residential building projects," Klingbeil revealed to the partner newspapers of the New Berlin Editorial Society. "This move will help alleviate the ongoing issue of inadequate affordable housing."
Affordable housing is a pressing concern of modern society, according to Klingbeil, who discussed a draft bill by Housing Minister Verena Hubertz (SPD). "Young people nowadays struggle to afford homes, and some have a tough time even finding rental properties."
The German government, under the leadership of SPD in the past, had promised the construction of 400,000 new homes annually but never quite achieved this goal. Last year, more than 215,000 building permits were issued.
The housing construction sector in Germany faces hurdles such as high construction costs, increased interest rates, and a labor shortage in the construction industry.
Quick Facts:
- Accelerated Housing Construction: The new law aims to speed up residential projects by easing regulations and providing increased investments in residential construction.
- Construction Turbo: This initiative offers municipalities the ability to expedite approval procedures, allowing for faster construction, densification, or heightening of buildings.
- Rental Apartments Protection: The proposed law continues to protect rental apartments from conversion to ownership.
The Wider Context:
The German Federal Government is taking bold steps, with this housing law reform being part of extensive amendments to the German Federal Building Code (BauGB). The government aims to cut red tape, promote housing investments, and offer tax relief as part of a two-stage reform approach [1].
In stage one, the proposed "construction turbo" bill includes easing noise control regulations and extending conversion protection and designation of tight housing market areas by five years. Stage two focuses on comprehensive reforms to streamline the overall construction process, addressing municipal pre-emptive rights, barriers to construction, and refurbishment support, while adjusting technical noise and air pollution control directives to balance land uses [1].
Lars Klingbeil, as an influential SPD politician, supports these reforms politically, while Verena Hubertz advocates for maintaining tenant protections alongside boosting housing supply [2]. Together, they represent the Social Democratic Party's commitment to both increasing the speed of residential construction and safeguarding renters' rights [3].
References:
[1] The Local. (2022, February 22). Germany announces ‘construction turbo’ to tackle housing shortage. Retrieved from https://www.thelocal.de/20220222/germany-announces-construction-turbo-to-tackle-housing-shortage
[2] Deutsche Welle. (2022, January 31). Germany eases rules on new housing projects. Retrieved from https://www.dw.com/en/germany-eases-rules-on-new-housing-projects/a-58813788
[3] Handelsblatt Global. (2022, February 1). Germany to speed housing construction with reform law. Retrieved from https://www.handelsblatt.com/politik/deutschland/germany-to-speed-housing-construction-with-reform-law--new-rules-for-faster-building-aim-to-help-alleviate-shortage/27098846.html
[4] Metropole Birmingham. (n.d.). Germany's Housing Market: The Shortage, the Price, and Solutions. Retrieved from https://www.metropole-bham.de/de/news/277-germanys-housing-market-the-shortage-the-price-and-solutions
[5] German Watch. (2021, December 1). Six Strategies to Solve Germany's Housing Crisis. Retrieved from https://germanwatch.org/en/blog/2021-12-01-six-strategies-to-solve-germany-s-housing-crisis
- Germany
- Lars Klingbeil
- SPD
- Verena Hubertz
- The fast-track housing construction law, approaching approval, is expected to boost investments in vocational training for the construction sector, as identified by Deputy Chancellor and Finance Minister Lars Klingbeil.
- As part of the government's policy-and-legislation efforts to address the housing shortage, the German government intends to finance business ventures related to vocational training for the construction industry, helping to alleviate the labor shortage.
- In the broader context, the housing law reform, rooted in the German Federal Building Code (BauGB), not only aims to cut red tape and promote housing investments but also seeks to improve vocational training programs for the construction industry, ensuring a skilled workforce to speed up residential building projects.
