Thursday, June 30, 2016

The rent regulation applied from 2018 all the Paris area – Le Figaro

The Housing Minister Emmanuelle Cosse has signed the decree to extend rent control to 412 towns in Ile-de-France. A measure denounced by professionals.

The real estate experts expected, but not necessarily too early, or to such ladder. The Minister of Housing Emmanuelle Cosse has indeed announced in an interview with France Bleu that rent regulation, which applied previously in Paris, would be extended to more than 400 cities and eight million inhabitants of the Paris region, from 2018. a measure that is a logical extension of the application of OLAP (Observatory of rents in the Paris area) who had claimed in April to expand its approval to 287 municipalities in the region.

as the minister explained by noting that “there are areas in Ile-de-France where rents are very expensive” and saying the device would ” to restore purchasing power to households concerned “. “In Ile-de-France, the market is continuously on both sides of the device and limited supervision creates distortions in Paris, for his part stressed Daniel Goldberg, deputy PS in Seine-Saint-Denis, favorable for framing. This required that the device applies to the entire metropolis of Greater Paris. “



Manuel Valls little pressed for the extension

His only regret is that Manuel Valls , stating that in August 2014 the Parisian experimental device would be triggered a year to a year and a half late for this extension of the frame. He will indeed reckon 12 to 18 months to collect data to define the rents charged and ceilings that will apply in the municipalities concerned.

impatience to frame that share no professional of ‘immovable. “I do not think the device would be as wide, says Jean-François Buet, president of the National Federation of Real Estate (FNAIM), it merely extends the principle which I dispute the relevance.” According to him, is only a bad signal for additional donor while rents have adjusted themselves down, in a period where the purchasing power is at half mast. “In fact it is a political strategy, a way to salute the work of Cécile Duflot and we would probably like this device, it is almost a non-event,” he wants to believe.



Soon Lille and Grenoble

Meanwhile, Bernart Cadeau, president of Orpi believes that this announcement is “economically nonsensical and psychologically wrong signal.” “We had already denounced the inefficiency of the system and the lack of relevance of the available data on Paris and it will be much worse in the Ile-de-France since it is much more diffuse,” he said. And behind the risk to the data, there is also the new conflicts between landlords and tenants on rent levels.

Most importantly, the measure permanently doucherait the desires of investors to bet on the rental. “They are less likely to Paris and fell further to 15%,” says Bernard Cadeau. A device he considers “draconian”, where Daniel Goldberg sees “a means of erasing the excesses of the market, not for a minority of owners.”

The Housing Minister also confirmed that the device may be effective in Lille, at the end of 2016. “And Grenoble launched its observatory for coaching by one and a half, “she said in Le Parisien. The Alur law of 24 March 2014 provides that the signing of a new lease or upon renewal, the rent for a unit can not exceed 20% of a reference rent fixed by prefectural neither he be lower 30%. This device prevents the rents exceed the ceilings set by an observatory.

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