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Germans in rented accommodation are feeling the cost-of-living squeeze

Every eighth tenant in Germany lived in a ‘housing overburden’ in 2021, according to new data from the German Federal Statistical Office, with single-person rent-paying households and lower-income groups seemingly the most affected.

A household is considered ‘overburdened’ if its working occupants are paying at least 40% of their income for housing, loans and utility bill costs. According to data from the Statistical Office, the price of energy for consumers has jumped by around 40% since December 2021.

In the case of tenants, they will have the right to heat their apartment below the minimum requirements in their accommodation. Essentially, in Germany, many buildings or apartments have a minimum heating requirement, set by landlords. The minimum heating requirement is there to ensure the property does not suffer cold damage, from frozen pipes and damp etc. Previously tenants could not heat their rentals below that threshold, but now they will have some leeway if they want to save on heating costs.

Around 51% of the German population live in rental accommodation and on average, German households spend 23.3% of their income on housing, while for renters that figure is 27.6%.

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