France expands number of areas that can bring in rent controls

MORE THAN 650 COMMUNES HAVE BEEN RECLASSIFIED TO ALLOW THIS. MANY MORE PLACES CAN NOW NOW ALSO OFFER INTEREST-FREE HOME LOANS FOR FIRST-TIME BUYERS Hundreds of new communes in France have

been reclassified as suffering from housing shortages, allowing authorities to bring in rent caps and other measures designed to ease the situation. Other possible measures include

introducing zero-interest home loans for first-time buyers (prêt à taux zéro, or PTZ), pushes for owners of empty properties to rent them out and incentives for developers to build new

homes. Rent caps are already in place in several areas due to housing shortages, such as Paris, Nice and the Pays-Basque.  Read more: Rent controls coming in for Pays-Basque Regulated rents

can be capped depending on multiple factors relating to the commune, and decided on by local authorities. It does not automatically mean that all the new communes will introduce rent

controls - the communes would first need to vote in favour. A decree published on July 5 reclassified 865 communes in regards to housing availability, with each one having slightly different

new rules.  There are 688 communes where rent controls can now be applied – you can search the decree here to see the list. Some additions include Beaulieu, Èze and Cap-d’Ail in the

Alpes-Maritimes, Cholet, Cherbourg, and Metz. DRIVE TO HELP ‘MIDDLE CLASS’ RENTERS AND PURCHASERS Incentives for building new houses to put on the rental market are also being introduced,

with a drive to produce more logement locatif intermédiaire (intermediate rental housing or LLIs). These are properties aimed at private sector employees who earn too much to qualify for

social housing (HLM) but can struggle to climb onto the property ladder.  Read more: French acronyms explained: HLM  Rental prices for homes classed as LLIs can reach above social housing

equivalents, and also provide landlords who own them with certain tax incentives.  The government wants to see around 30,000 LLIs built per year by 2026. In terms of attempting to get

renters on the property ladder, the spread of PTZ loans particularly affects those looking to buy in more built-up communes in larger towns or cities (those that are in Zones Abis to B1). 

Read more: How to know which French housing zone you live in and what it changes