In the past year, we already had you over a possible ban on dividing blocks of flats informed. This ban has now come into force. The state government has issued the so-called “Lower Saxony Ordinance for the Determination of Areas with a Tight Housing Market within the meaning of the Building Code.” But what does this mean for homeowners and tenants?
In this article, we answer the most important questions about the new regulation and its effects. Are you planning to sell a property or would you like legal advice on your real estate project? Then we are happy to be there for you.
What counts as a “tight housing market”?
Since last year, a new building law has allowed state governments to define individual municipalities as a “tight housing market” according to defined criteria. These criteria include sharply rising rental prices, low vacancy rates and the burden of rent on individual households.
For the city of Hannover and 17 other municipalities in Lower Saxony (including Laatzen and Langenhagen), these criteria now apply. If a municipality's housing market is defined as “tight,” the municipalities have extended rights to regulate the housing market. In Lower Saxony, this means that anyone who owns and currently rents out a block of flats may only sell individual flats with permission.
What effects does the regulation have for property owners?
The respective municipality in which the property is located — i.e. for people in Hannover, the city of Hannover — i.e. the city of Hannover — is now responsible for granting a permit to sell individual flats from a block of flats.
There are exceptions, according to which flat owners are released from the permit requirement. However, if your specific case does not fall under these exceptions, it is unlikely that the municipality concerned will immediately “water down” the new regulation with individual exemptions and permits. But: The regulation is initially only valid until the end of 2025, meaning that you may be able to sell your flat again without a permit in a few years.
However, this is also very likely at this point in time: The rent brake will apply to all municipalities affected by the “tight housing market.” Ultimately, this is also intended to reduce the burden on the housing market — by allowing the rent in existing flats to be no more than ten percent higher than the usual local comparative rent in the event of a change of tenant.
Who is exempted from the permit requirement?
Fortunately, there are also exceptions to the permit requirement. These include the following scenarios: If there are fewer than five flats in a residential building, owners can continue to sell individual flats. Even if a community of heirs inherits a block of flats and this is to be divided in favour of individual heirs, the division is still possible.
Apartments may also be sold for personal use: Anyone who wants to sell a flat to their relatives for their own use can continue to do so. Apartments may also be sold to current tenants — but only if at least two thirds of the tenants want to buy their flats.
According to the ordinance, the municipalities with a “tight housing market” in Lower Saxony are the state capital Hannover and the cities of Laatzen and Langenhagen. Buxtehude, Lüneburg, Borzburg, Braunschweig, Buchholz in der Nordheide, Göttingen, Norderney, Oldenburg, Osnabrück, Wolfsburg, Juist, Wangerooge, Baltrum, Langeoog and Spiekeroog are also affected.
So if you own a block of flats in Lower Saxony that is not located in any of the mentioned municipalities, you are not affected by the new ordinance — and therefore not by the distribution ban.