They won’t even be able to raise rents in line with inflation based on an annual benchmark set by the state. The rules will apply to British owners of French properties who rent to tenants as their main residence but not as short-term holiday homes. But Jeremie Moufflet of Stone and Wood real estate in Annecy said EPC ratings were already concerns for British and other clients. “It’s not so much of a problem when they’re buying to live in the house, but it’s a bit of a pain for investors who are buying to rent out long-term if in three or four years it’s no longer possible,” he said. In addition to the rent freeze, from January 2023 it will no longer be possible to rent any French residence as a main residence with an energy consumption of more than 450 kw/m2. The noose will further tighten landlords from January 2025 when G-rated properties will not be allowed on the rental market, followed by F-rated properties from 2028 onwards and E-rated homes from 2034. From April 2023, it will also be compulsory to carry out a regulatory energy audit at seller’s cost on any properties classified as F or G. The audit was supposed to be compulsory this year, but the government said it had to be pushed back due to a lack of companies able to carry them out.
Renovate or sell properties
Owners of low-performing properties have the option to renovate or sell them as there is no sales ban. To date, only 6,300 landlords have applied for government help to refurbish their properties, while a poll last year showed 13 per cent intended to sell and 16 per cent to keep as is. Property groups warned it would be impossible to upgrade properties in time. “The deadline is very short! We knew there were supply issues, material and manpower issues,” said Christophe Demerson of the national property owners association, UNPI. The changes risk affecting the housing market, said Norbert Fanchon, chairman of the board of real estate group Gambetta. “The fact that many properties will become obsolete immediately could push prices higher in the rest of the market,” he said, adding that the selling price of low-ranking homes would inevitably fall.
Critics accuse Macron of ‘greenwashing’
The idea was proposed during a climate change convention held in 2019, which was attended by 150 ordinary people whose names were drawn from a hat. Mr Macron promised to implement their proposals to cut greenhouse gas emissions by 40 per cent by 2030, compared to 1990 levels. The measures come as France prepares a massive “energy sobriety” package and two days after France became the first European country to ban fossil fuel ads. But critics have accused Mr Macron of “greenwashing”, as some ads will be allowed for fuels that have some renewable energy content or comply with certain criteria. Sponsorships are also not included in the ban. Macron has promised to put the environment at the center of his second term after being re-elected in May. Setting the stage for further restrictions, he warned on Wednesday that France was reaching “what could look like the end of plenty”. “I think we are in the process of experiencing a tipping point or a major upheaval,” he said, also referring to rising energy and food costs linked to climate change and the war in Ukraine.
