Property: everything that changed on 1st July 2022

July always brings its share of new developments and this year, the property sector is particularly affected. Through various measures, the government is attempting to provide answers to landlords and tenants, who are concerned about the inflationary context. The ecology of housing is also targeted, with a view to continuing the energy transition and renovating the country’s housing stock.

The property new developments of 1st July 2022: here we go!

Implementation of the rent cap

Protecting the French from rising energy prices makes it logical to install protection against the foreseeable increase in rents. Indeed, these are indexed to general inflation, which, as a reminder, stands at over 5% over a rolling year and could gain further points by the end of 2022.

To prevent rents from following the same path, the government is therefore imposing a “rent cap”, intended to limit this increase to 3.5% – for one year, for the moment. At the same time, housing benefits (APL) will be increased by the same percentage.

The supplementary finance bill, although not yet definitively approved, should be finalised in the coming weeks for retroactive application from 1st July.

End of oil and coal heating

This decision was taken a long time ago, but it came into force on 1st July: the most polluting energies will no longer have a place in our homes. More precisely, the installation of new boilers operating on oil or coal is now totally prohibited.

It should be noted that existing boilers do not need to be replaced immediately and can, on the contrary, continue to be maintained and repaired – the opposite would have been an environmental nonsense!

In some specific cases, the prohibition may be subject to exemptions if the consequences of changing fuel are too inconvenient: impossible works or other existing networks that are too underdeveloped to allow a simple transition.

Facilitation of combining MaPrimeRénov’ / zero-interest eco-loan (PTZ)

Simplifying the procedures for accessing energy renovation aid is a welcome willingness from the public authorities. The introduction of the MaPrimeRénov’ scheme already brought together all existing public aid over a year ago. To also benefit from the eco-PTZ, applicants until now had to make two separate requests: to the national housing agency (Anah) for MaPrimeRénov’, and to a bank for the PTZ, providing the same supporting documents to both entities.

The Anah’s agreement to grant a subsidy will now be sufficient to constitute the file for the bank. The works must not have started more than six months before the zero-interest loan request, which must be issued within six months of the Anah’s subsidy agreement.

Combining MaPrimeRénov’ Sérénité and CEE premiums

Modest and very modest households carrying out significant energy renovation works, allowing an energy gain of at least 35%, may, subject to income conditions, benefit from a complementary premium through the MaPrimeRénov’ Sérénité scheme. This aid can reach 50% of the total cost of works. It should be noted that it is necessary not to have taken out a PTZ during the five years preceding the request.

MaPrimeRénov’ Sérénite can now be combined with premiums related to energy saving certificates (CEE) allocated by energy suppliers. Combination is possible with premiums granted by type of works, or with the premium allocated for overall renovation, which must then allow an energy gain of at least 50%.

End of the Coup de pouce isolation boost

Roof, attic or floor insulation works will now receive less significant aid: the Coup de pouce isolation boost ended on 30th June and households undertaking such works will have to make do with premiums accessible via the CEE.

This is not a backward step by the government, but rather the willingness to adapt aid to energy performance gains, which the Coup de pouce isolation did not allow. It is also an aid that left the door open to numerous abuses by companies.

Letting advertisements become more detailed

Landlords are now subject to more obligations regarding the information to be provided in their letting advertisements. In addition to the monthly rent price (accompanied by the mention “per month”) and the habitable surface area (in accordance with the Carrez law), they must specify the level of rent control in cities where the scheme is applied, with, if necessary, the amount of additional rent required.

Furthermore, service charges must be detailed and explained, as must the payment methods for these charges. Other details are mandatory, such as the furnished nature of the letting where applicable, the amount of the deposit, the fees payable by the tenant for the preparation of the inventory report and, of course, the classification of the property in the energy performance certificate (and for greenhouse gas emissions).

If these new developments do not revolutionise the property sector – except perhaps the rent cap which could modify the strategy of some investors – the measures are generally going in the right direction: that of allowing people to occupy healthier housing without necessarily ruining themselves to improve it. Other measures are planned to come into force on 1st January next, such as the definition of decent housing through energy performance criteria. To be continued!