Housing crisis in France: the government unveils measures that disappoint the sector

The government details this Monday, June 5, 2023 its plan to defuse the "risk of social bomb" that is the housing crisis, without convincing professionals in the sector.

Construction workers on a building under construction, September 14, 2021 in Bordeaux, southwest of France. © PHILIPPE LOPEZ / AFP

Text by: RFI Follow

Advertising

Read more

This plan is drawn from the discussions of the National Council of Refoundation (CNR), a series of thematic consultations whose Prime Minister Elisabeth Borne concluded the housing component on Monday at 17:30.

Without waiting, Matignon unveiled the essential on Sunday evening, June 4. The government plan has five objectives: to promote home ownership and renting, to support the production and renovation of social housing, to restart construction and to increase the energy renovation of the private stock. On sensitive subjects, such as the overhaul of the taxation of furnished tourist accommodation, accused of aggravating the crisis, major projects will also be "opened", assured Matignon.

LIVE | Closing speech by the Prime Minister @Elisabeth_Borne of the National Council for Housing Refoundation alongside @OlivierKlein93, Minister Delegate for Urban Affairs and Housing and François @bayrou, High Commissioner for Planning. https://t.co/CiISFkiUmV

— Government (@gouvernementFR) June 5, 2023

Among the 14 measures of this plan: there is in particular the extension of the Zero Rate Loan (PTZ). It was supposed to end in this year 2023. It will finally be maintained until 2027. But new individual houses will now be excluded from the scheme. Another measure to help the French invest: the maintenance of the monthly revision of the rate of wear until the end of the year. The goal is to avoid the blocking of mortgage files.

Matignon also intends to develop the "real solidarity lease" which makes it possible to acquire a home without owning the land to buy at a lower price. To this end, the income ceilings will be increased. On the other hand, no control of land prices. One of the strong proposals resulting from the debates of the National Council of Refoundation.

For rentals: the government is expanding existing measures: the deposit issued by Action logement and the "intermediate rental housing" scheme at the key, low-rent housing without being social. An additional €160 million will also be made available over five years to help poorly housed people access sustainable housing.

This plan will be partly financed by the discontinuation of the Pinel system in 2024. This measure, which grants tax reductions for rental investments, is considered ineffective.

Housing sector disappointment

Even before Elisabeth Borne spoke, housing professionals did not hide their disappointment. "After seven months of work and more than 200 people at work, the FFB was waiting for an electroshock. It's a disappointment! Almost none of the proposals made by the sector have been retained, "castigated the president of the French Federation of the building, Olivier Salleron. "I find it difficult to understand the link between the commitment they announce and measures or even extremely vague commitments," said Emmanuelle Cosse, president of the Social Union for Housing, which represents social landlords. The French Federation of Builders of Individual Houses (FFC) believes that by abolishing the PTZ for the new house, the government means that the latter "is reserved for the richest, for an elite".

Anticipating the criticism, the Prime Minister's entourage stressed Sunday that "it is not at once that we solve the entire housing policy". However, he assured to press "a little on all the levers" and act both on the structural and cyclical aspects of the crisis.

On the political side, Les Républicains, who notably organized a conference on housing last week, promise to push their proposals to the National Assembly. Because those of the government are not up to the task according to the deputy LR Thibault Bazin, contacted by Pierrick Bonno, of the political service of RFI. "It's not going in the right direction at all. I would say even worse, we are going backwards, insists the MP. We were waiting for measures to restart construction and it is quite the opposite. The measures are very worrying, so we will lead the battle to restart construction, renovation.

According to the deputy La France Insoumise (LFI) and president of the study group on housing at the National Assembly, William Martinet, the proposals are not up to the task and especially on the issue of public investment. "The expectations were huge and I think the government unfortunately got through it totally [...]. It would have absolutely required a massive public investment," William Martinet told Aurélien Devernoix, of RFI's political department.

>> Read also: Debate of the day - France: is housing a "social bomb"?

(

And with AFP)

Newsletter Receive all the international news directly in your mailbox

I subscribe

Follow all the international news by downloading the RFI application

Read on on the same topics:

• France
• Housing
• Economy