Real estate: rents should increase by 3.5% over one year

While they were to be frozen, rents will be capped. The government is seeking to limit the surge in the housing budget of the French who are victims of the historic inflation that the country is experiencing.

A time advanced as a means of supporting the budget of the French, the freezing of rents seems to have been definitively abandoned by the executive. The latter would rather count on a cap of the increase at 3.5% over the next 12 months, according to information from RTL. A decision motivated by the historic surge in prices experienced by the country and whose housing is not protected. In the first quarter, the reference rent index (IRL), which sets the annual increase allowed for landlords, rose by 2.48%, a level not seen since 2008. Contacted by

Le Figaro

the Ministry of Economy did not respond.


Real estate: how to increase a rent that has not changed for years?

In recent weeks, teams from the Ministry of the Economy and Ecological Transition, in consultation with representatives of real estate professionals, have sought solutions to curb the rise in the IRL. It was above all

a consultation exercise, where the aim was to let the actors speak

“, we underline at the Ministry of Ecological Transition, whose attributions include housing. The ideas expressed should help Prime Minister Élisabeth Borne to decide with a view to a bill on purchasing power to be presented on June 29.

Rent freeze ruled out

The proposal to freeze rents, brought by consumer and tenant associations but rejected by professionals, was quickly dismissed. ”

Very clearly, they told us that they were not going towards a total rent freeze because they are aware of the burden that this will have on landlords

“, explained to AFP the president of the Social Union for Habitat (USH), Emmanuelle Cosse, who represented the social landlords. ”

Everyone agreed that the rent freeze was not good

“, also testified Danielle Dubrac, president of the union of professionals United.

Other solutions had also been proposed in order to make the rise in the IRL less painful: no longer reassess it for a year from this summer, smooth it by taking into account the average index of the last four quarters, or reform its method of calculation to exclude energy prices, which contribute to accelerating inflation.


No, France does not really lack housing

At the same time, the government is seeking to relaunch housing construction, which is likely to bring down rental prices. This measure, rather focused on the medium term, is a constant claim of the Federation of real estate developers. The USH also called for a revaluation of housing aid (APL), trimmed during Emmanuel Macron’s first term, so as not to undermine the financial capacity of social landlords to renovate buildings.