The major landlords in Germany are warning of significant cost increases for tenants because of energy prices. “The situation is more than dramatic, and social peace in Germany is in massive danger,” said the industry association GdW on Thursday.
As a result of the Russian war against Ukraine, prices across all types of energy rose by an average of 37 percent up to May. Gas prices in particular are constantly reaching new heights. Last night, a megawatt hour cost 183 euros – an increase of eight percent compared to the previous day. Just under a month ago, the price was around 80 euros.
According to the industry association, the higher energy prices would mean an additional burden of 508 euros per year for a one-person household compared to 2021. However, significantly higher increases are to be expected.
In a lower scenario, which is rather unlikely, a four-person household would face additional costs of 1818 euros for household energy alone in 2022 as a whole. In the upper scenario it is 5074 euros, according to the estimate of the GdW Bundesverband. Added to this are the indirect burdens via the energy cost component of almost all goods and services.
According to the association, some of the housing companies could even face liquidity bottlenecks that threaten their existence. Ancillary cost deductions may only be raised after settlement without the consent of the tenant. Tenants and companies should not be left alone in this situation. “In this emergency situation, the state must live up to its social responsibility,” the association demanded. He suggested various forms of state aid funds to limit additional costs.
The Federal Association of German Housing and Real Estate Companies primarily represents cooperatives and municipal housing companies, but also listed industry giants. The members own about 30 percent of the rental apartments in Germany.
Meanwhile, the high gas prices are also prompting Germany’s largest housing group, Vonovia – a GdW member – to react. According to the company, it wants to save gas and reduces the heating output in many of its apartments at night. “In order to save as much gas as possible in our stocks, we will successively introduce a night-time reduction in the heating temperature for the gas central heating systems in our stocks,” said a Vonovia spokesman.
Vonovia reduces the heating output between 11 p.m. and 6 a.m. to 17 degrees Celsius. During the day and in the evening hours, the tenants could continue to heat as usual.
