The Civil Code,
in use.

Chapter I · §§ 556d ff. BGB

The rent brake, extended to 2029

The rent brake (Mietpreisbremse) limits rents in new tenancies in tight housing markets to 10% above the local comparative rent. It was due to expire. Hubig introduced the extension bill in the Bundestag on 5 June 2025, arguing that the brake is “not a cure-all, but it works”. The Bundestag passed the extension to 31 December 2029 on 26 June 2025 with votes from CDU/CSU, SPD and the Greens; it entered into force on 23 July 2025.

Criticism: The landlords’ association Haus & Grund considers it counterproductive; the tenants’ association welcomed it but wants loopholes closed; the Left called it insufficient, the AfD argued it creates no new housing.

Chapter II · Tenancy reform 2026

Index rents, furnished flats, short lets

The second tenancy package, adopted by the cabinet on 29 April 2026 and read for the first time on 9 July 2026, addresses ways around the rent brake:

• Index rents: in tight markets, annual increases above 3% would count only half.
• Furnished flats: the furniture surcharge would be capped at 1% of the furniture’s current value per month, or 10% of the net rent for fully furnished flats.
• Short-term lets: limited to six months, with one extension to eight.
• Second chance: paying arrears within the grace period would also prevent ordinary termination.
• Modernisation: the threshold for the simplified procedure rises from €10,000 to €20,000.

Criticism: Haus & Grund’s president called it a vote of no confidence against private landlords; the Bundesrat asked for better balance and incentives for new construction. The tenants’ association supports it. At a real-estate congress in March 2026, Hubig defended the package alongside a simpler building standard (“Gebäudetyp E”).

Chapter III · § 356a BGB

Contracts concluded online

Since 19 June 2026 online consumer contracts must offer a clearly labelled withdrawal function. The rule sits in the Civil Code itself, alongside the general law of withdrawal. See Consumer Protection.

Chapter IV · Warranty and Product Liability Act

Repair and liability for software

The right-to-repair law (adopted June/July 2026) extends warranty rights when consumers choose repair. The new product-liability law, in parliament since March 2026, extends strict liability to software and AI and must be in force by 9 December 2026 under EU law.

Chapter V · Insurance contract law

Natural-hazard insurance

After repeated floods, the coalition plans a compulsory natural-hazard component in new residential building insurance, with a possible opt-out. Hubig set out the plan at the insurers’ association conference on 23 September 2026, citing coverage of 59%. Objections from the insurance industry have not been reviewed for this page.