In a bid to ease Germany’s housing crisis, the Federal Cabinet has passed a new draft law intended to simplify building regulations and reduce costs for new housing. Known as the Building Type E Act, this law will allow builders to forego certain "comfort" standards, which are not essential to the safety of the building but often increase construction costs.
The new legislation applies to various aspects of construction, such as room height, sound insulation, window specifications, and standard indoor temperatures in bathrooms. Builders will no longer be required to meet these standards unless explicitly specified in the construction contract. For projects involving private clients, builders must clearly inform them of any deviations from these comfort standards.
Key Points of the Building Type E Act:
Federal Construction Minister Klara Geywitz explained that "Building Type E" encompasses simple, experimental, and "debureaucratized" building approaches. The German building code currently mandates construction to follow the “recognized rules of technology,” which includes additional standards that may not directly affect safety.
The decision comes amidst ongoing concerns from industry leaders regarding the over-regulation of construction. Vonovia CEO Rolf Buch remarked, "We have walled ourselves in with rules and laws," calling for deregulation at the federal, state, and local levels. Peter Hübner, president of the Construction Industry Association, echoed these sentiments, urging a "change in mentality" to make construction more affordable.
Economic Impact
Justice Minister Marco Buschmann, whose ministry helped draft the law, noted that “Building in Germany is too expensive,” contributing significantly to housing shortages in urban centers. The Ministry of Justice estimates that these reforms could save over €8 billion annually, allowing builders to select housing standards that align with their budgets.
