Will the government freeze rents to fight inflation?

by time news

It feels like going back two years. At the beginning of 2020, several associations had called for the postponement or even the cancellation of the payment of rents to deal with the health crisis. Two years later, this time they are asking for rents to be frozen to deal with soaring inflation. “We want it to last 12 months from July 1, 2022, both for the private and social park“, specifies Jean-Yves Mano, president of the CLCV. Another difference: the association wants this measure to be mandatory and not just an incentive.

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Each year, a landlord can increase, if provided for in his rental contract, the rent by the same rate as the reference index of rents (IRL). However, it rose by 2.48% in the first quarter of 2022 compared to the first three months of 2021, according to INSEE. Never seen since the end of 2008! The last time the IRL exceeded the 2% mark was 10 years ago. “If the government does not intervene, rents are likely to increase by up to 5% by the end of the yearsays Jean-Yves Mano. Tenants, who must arbitrate between filling their fridge and paying their rent and their bills, will not be able to cope with such increases

A freeze rather than a check?

What does the government think of this? According to the CLCV which was received, with other associations, in Bercy last week, the executive would not be against a rent freeze. “We had a more than attentive ear from Minister Bruno Le Maire who listened to us with an interesting opennessconfides Jean-Yves Mano. He told us he’d rather freeze rents than raise APLs“. If the rents follow the inflation with the IRL, the APL are based on the same indicator. In the event that these housing aids increase to 5%, this generates an additional cost for the State which could reach 1 billion euros! What weigh down public finances. Contacted by Le FigaroBercy confirms the holding of a meeting with “economic players, economists, distributors and consumer associations». «Proposals have been made. The minister asked to have them appraised. Nothing more. No decision has been made“Explains the entourage of Bruno Le Maire.

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Freezing rents would therefore hold the rope. What provoke the anger of the owners. “When it comes to attacking private property, the imagination is in power and many raise their finger“, reacts Christophe Demerson, president of the National Union of Property Owners (UNPI). The UNPI recalls that donors are also suffering from inflation, between “the increase in property tax and the increase in the cost of conventional and energy-efficient renovation work“. Not to mention that these rents serve as additional income or retirement for small landlords. “Owners benefit from tax advantages and must participate in the solidarity effort. This is where they will face more and more unpaid bills», retorts the president of the CLCV who forgets that real estate is one of the most taxed investments.

In short, two years after the start of the health crisis, the debate on rents is raging again. Until then, to protect the purchasing power of the French, the government had mainly taken out the check book (inflation allowance, food check, discount at the pump, energy check, etc.). Will he freeze rents and deprive millions of landlords of additional income? “It would be a first to my knowledge.says Jean-Marc Torrollion, president of the National Real Estate Federation. By blocking the IRL, let’s not get used to ultra-framed rents».

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