Paris, Nice, Lyon, Bordeaux, Marseille… All are on the list of cities with the most expensive rents in France. To allow as many people as possible to have a roof over their heads, the Abbé-Pierre Foundation is in favor of rent controls being applied in more municipalities.
In its latest report on poor housing unveiled on Tuesday, it considers that it is “urgent to act because tenants in the private sector are the main losers from the rise in real estate prices (rate of effort excessive, risk of non-payment and expulsion)”. Its general delegate, Christophe Robert will receive Emmanuel Macron during a public exchange on the occasion of the presentation of this work this Wednesday. It will be mainly centered on the balance sheet of the five-year term “and the prospects drawn up”, specified the Elysée to 20 minutes.
The Foundation also calls on presidential candidates to tackle issues related to poor housing. On the left, Christiane Taubira has already spoken out in favor of a “general framework for rents”, as has Anne Hidalgo.
What is rent control?
It prohibits the owner from fixing a rent higher than a certain amount and applies only in the municipalities located in tense area. These are “areas of continuous urbanization of more than 50,000 inhabitants where there is a marked imbalance between supply and demand for housing”, specifies the National Agency for Information on Housing (
Anil). The objective is both to cap the initial amount of rents, but also to limit its increase between two rentals.
In which housing and agglomerations does it apply?
The rent control concerns housing rental contracts (including joint tenancies with multiple leases), furnished or unfurnished, for use as a main residence or for mixed use (professional and main residence). Company accommodation and secondary residences are not affected.
After the judicial cancellation of the framework in Paris and Lille, the Elan law in 2018 made its implementation optional and experimental, recalls the latest report from the Abbé Pierre Foundation. This did not prevent this system from being extended in 2021 to several towns in Seine-Saint-Denis, respectively grouped in the two public establishments: Plaine Commune and Est Ensemble. This is also the case in Lyon. Bordeaux and Montpellier should experience the same fate in 2022.
If officially, the Minister of Housing, Emmanuelle Wargon encourages communities to seize it, in fact, everything is not so simple, tempers the Abbé-Pierre Foundation. “The government, based on the very vague criteria resulting from the Elan law, refused supervision for the agglomerations of Grenoble and Grand-Orly Seine Bièvre, on the pretext that rental prices would be relatively stable there. »
What are the possible remedies in case of too expensive rent?
In the event of disputes over the amount of their rent, tenants must seize the departmental conciliation commission (CDC) or possibly the courts. “Between those who are not even aware of the measure and those who have struggled to find accommodation, it is very rare for a tenant to undertake a procedure”, explained to AFP Bertrand Pallatin, director of a real estate agency Guy -Hiccups in the 16th arrondissement of Paris.
In case of non-compliance of the maximum authorized rent, the Élan law provides that the lessor is obliged to bring the contract into conformity and to reimburse any overpayments to the tenant. In the event of an unsuccessful formal notice, the fine incurred may reach up to €5,000 (€15,000 for a legal entity).
Are there controls and what about fines?
Since 2019, only 10 administrative fines have been issued by the Ile-de-France prefecture. According to the Abbé-Pierre Foundation’s Rent Control Observatory, 35% of classified ads in Paris exceed the ceilings, with an average amount of 196 euros/month. “This impunity clearly does not encourage lessors to comply with the law, nor injured tenants to seize it”, comments the organization recognized as being of public utility.
As part of the “decentralization” bill known as “3DS”, the deputies have given local authorities the possibility of sanctioning themselves landlords who ignore rent controls. For his part, Manuel Domergue, director of studies at the Abbé-Pierre Foundation, insists on the need to have state agents in charge of controls. “We have to stop basing this solely on the initiative of the tenant. All institutions – for example the Family Allowance Fund (Caf) – which are aware of leases exceeding the limits must be able to turn to the lessor. »
What are the impacts on rental market prices?
In total, more thanone in four Parisian rents was exceeded in 2020 despite the law reintroduced in 2019, underlines the Rent Observatory of the Paris conurbation (
Olap). At 28%, the share of overruns during moving in is slightly higher than that of the 2015-2017 period (26% in 2015, 23% in 2016 and 21% in 2017) and the average overrun (€168) is at the level of that observed in 2016. According to real estate professionals interviewed by AFP, the law allows a “certain regulation of the market”. Olap also points to an “undeniable, albeit moderate, moderating effect (…).
The Abbé-Pierre Foundation considers that the application of the framework has “proved its worth”. Nevertheless, according to her, it suffers from many shortcomings. “It concerns too few cities, is too timorous in very tense areas and it is insufficiently known and appropriate, leaving recalcitrant owners and professionals to flout it without risk. To increase the extension of the framework, it is necessary to return to the initial scope of the Alur law, which concerned the
28 tense agglomerations. » The « 3DS » bill currently provides for a
extension of the experiment rent control until 2026. It also augurs the reopening of applications for other municipalities. The club of towns with controlled rents could expand again in the future.