[5/17/17] In an unprecedented move, Hamburg authorities confiscated six residential units in the Hamm district near the city center. A trustee appointed by the city is now renovating the properties and will rent them — against the will of the owner — to tenants chosen by the city. District spokeswoman Sorina Weiland said that all renovation costs will be billed to the owner of the properties.
Authorities in Hamburg, the second-largest city in Germany, have begun confiscating private dwellings to ease a housing shortage — one that has been acutely exacerbated by Chancellor Angela Merkel’s decision to allow more than two million migrants into the country in recent years.
City officials have been seizing commercial properties and converting them into migrant shelters since late 2015, when Merkel opened German borders to hundreds of thousands of migrants from Africa, Asia and the Middle East. Now, however, the city is expropriating residential property units owned by private citizens.
In an unprecedented move, Hamburg authorities recently confiscated six residential units in the Hamm district near the city center. The units, which are owned by a private landlord, are in need of repair and have been vacant since 2012. A trustee appointed by the city is now renovating the properties and will rent them — against the will of the owner — to tenants chosen by the city. District spokeswoman Sorina Weiland said that all renovation costs will be billed to the owner of the properties.
The expropriation is authorized by the Hamburg Housing Protection Act (Hamburger Wohnraumschutzgesetz), a 1982 law that was updated by the city’s Socialist government in May 2013 to enable the city to seize any residential property unit that has been vacant for more than four months.
The forced lease, the first of its kind in Germany, is said to be aimed at pressuring the owners of other vacant residences in the city to make them available for rent. Of the 700,000 rental units in Hamburg, somewhere between 1,000 and 5,000 (less than one percent) are believed to be vacant, according an estimate by the Hamburg Senate.
Socialists and Greens in Hamburg recently established a “hotline” where local residents can report vacant properties. Activists have also created a website — Leerstandsmelder (Vacancy Reporter) — to identify unoccupied real estate in Hamburg and other German cities.
It remains unclear why the landlord in Hamm left his apartments vacant for more than five years. Some have posited that, given the location of the properties, the renovation costs may have been too high and probably would not have been offset by the rental income.
Others are blaming city officials for not approving more building permits to allow for the construction of new residential units. A study conducted in 2012 — well before the migrant crisis reached epic proportions — forecast that by 2017, Hamburg would have a deficit of at least 50,000 rental properties.
In 2016, however, only 2,433 new residential units came onto the market, while only 2,290 new building permits were approved, according to statistics provided by the City of Hamburg. These numbers were up slightly from 2,192 new units and 2,041 new permit approvals in 2015.
In 2012, Hamburg’s Socialist government presented a plan to build 6,000 new residential units per year. The plan never materialized, however, because prospective builders were constricted by government-imposed rental caps which would have made it impossible for them to even recover their construction costs.
Since then, the city has turned to seizing private property to resolve its self-inflicted housing crisis.