Balancing Rent Control and Property Rights

The article "Balancing Rent Control and Property Rights" is published on Verfassungsblog, a global forum dedicated to scholarly debate at the intersection of academia and society. The platform focuses on public law and promotes discussions that are interdisciplinary and accessible to the public. The authors, Allegra Grillo, Arnulfo Daniel Mateos Durán, and Alessio Sardo, are associated with the University of Genoa and the ERC HABITAT project, which investigates urban inequality in European cities

The article highlights the escalating housing crisis across major European cities, which has shifted from warning signs to a full-scale emergency. Between 2010 and early 2025, house prices in the EU increased by 57.9%, while rents rose by 27.8%. This surge has led to rapidly increasing rental costs and a diminishing supply of affordable housing options. Key contributing factors include market speculation, inflation, and the rise of short-term rentals. The aftermath of the 2008 financial crash has further intensified the focus on housing within urban political debates, revealing the consequences of decades of deregulation and welfare retrenchment

In response to the growing crisis, governments have turned to rent control as a familiar solution. Measures to cap or stabilize rents are being reinstated across various jurisdictions to protect tenants and curb market speculation. However, these interventions raise complex legal questions regarding the extent to which states can regulate the rental market without infringing on landlords' property rights. The article emphasizes the tension between the need to protect tenants and the limitations imposed on landlords' ability to profit from their properties

The article discusses the legal landscape surrounding rent control, particularly in relation to the European Convention on Human Rights (ECHR). It outlines the requirement that any interference with property must pursue a legitimate public aim and maintain a fair balance between general interest and individual rights. The European Court of Human Rights has addressed this issue in the case of Hutten-Czapska v. Poland, where it ruled that while states may regulate the rental market, they must allow landlords meaningful economic use of their property. 🇩🇪 Germany's Approach to Rent Control Germany's Federal Constitutional Court has established a robust framework regarding rent control, rooted in property rights as defined by Article 14 of its Basic Law. The court has consistently upheld the view that property rights include the income derived from rental agreements. A significant ruling came in 2020 when Berlin's sweeping Mietendeckel rent freeze was annulled based on legislative competence rather than property rights violations, emphasizing that rent control is permissible if it allows for meaningful economic use of property. 🇫🇷 France's Legislative Balance In France, the Conseil constitutionnel adopts a deferential approach to social and economic legislation. The council upheld the central provisions of the 2014 Loi ALUR, recognizing that facilitating access to housing in areas facing shortages is a legitimate public aim. The only provision it invalidated was one that unjustifiably limited rent supplements, confirming that rent controls can be constitutionally viable when carefully tailored. 🇮🇹 Italy's Constitutional Perspective Italy's Corte Costituzionale navigates the tension between property rights and social goals, sometimes upholding and other times declaring rent restrictions unconstitutional. The court emphasizes that while tenants deserve protection, the burden of stabilizing the housing market must not unfairly impact property owners. Housing is viewed as a good with both economic and social dimensions, and any regulation must be justified by strong public interests

European constitutional courts exhibit a consistent pattern in reviewing rent control laws, affirming that while states may intervene for social purposes, they must do so within strict legal boundaries that prioritize property rights. This dynamic complicates the implementation of effective rent policies aimed at ensuring affordability, ultimately making it more challenging for lawmakers to secure accessible housing solutions for tenants in need.