German landlord LEG calls for limiting heating supply - report

LEG Immobilien, one of Germany's largest residential landlords, wants to restrict heat supply to its tenants this winter, the head of the company told the Handelsblatt newspaper, calling on politicians to legalise such a move.

LEG Immobilien, one of Germany's largest residential landlords, wants to restrict heat supply to its tenants this winter, the head of the company told the Handelsblatt newspaper, calling on politicians to legalize such a move. Chief Executive Lars von Lackum said making sacrifices had become necessary in light of the war in Ukraine.

"For this winter we need a legal option permitting us to lower the temperatures more than before," von Lackum said, warning that Germany faced major problems if it did not make "tough decisions". The call comes amid worries that tenants could struggle to make rent as the soaring cost of energy, driven by reduced gas supply from Russia, pushes up inflation, which came in at 8.2% in June.

In the interview, von Lackum warned that many smaller property rental companies would be left fighting for survival since they had to make advance payments on behalf of tenants, up to 20% of whom could struggle to pay their energy bills. Last week, Chancellor Olaf Scholz promised relief measures to shield low-income families from higher energy costs, including welfare reform and housing benefits.