If the mechanism is currently almost non-binding in France, eight new local authorities have sent restrictions to the governor.In Germany, a regional law has just been declared unconstitutional
The health crisis gives tenants a respite in major French cities (such as Paris, Lyon, Bordeaux, Marseille or Lille). As the housing vacated by tourists is more abundant, rents no longer increase or even drop slightly. But the calm may not last. The mayors are looking for solutions so that once the Covid-19 pandemic is over, their rental market will not be as inflationary and selective as before.
Because investors have been looking for high returns from the tourism industry, and in Paris, for example, they have been eager to buy offices and convert them into hotel suites. Therefore, at the beginning of April 2021, the City of Paris paid 8.5 million euros for the first move, located in the very central Sentier district (2E The area, located in the new central area of Paris), is already full of Airbnb-type furnished apartments. This is an office building. Purchasing company Pierre Rénovation Tradition hopes to allocate it for this purpose and will create 17 intermediate social housing there.
Rent control is another means of controlling real estate inflation. The law on housing, development, and digital technology development (ELAN Law of November 23, 2018) authorizes cities to demand maximum amounts from county governors.Paris has been in effect permanently since JanuaryYes July 2019, followed by Lille, Hellemes and Lom, March 2020.
In use, the device can stop the most obvious abuse and has a slight regulating effect. But the mechanism is almost unlimited, many owners are not sanctioned, and there is no great risk of sanctions. The Autonomous Region of Île-de-France, which is responsible for the control, has recorded 102 reports of overspending in the capital in the past two years, of which 75 have been formalized. Only 9 people were fined not more than 1,500 euros, while the law allows individuals to be fined up to 5,000 euros and legal persons are fined up to 15,000 euros.
Eight other local authorities have requested the implementation of the lease framework: the framework will take effect on January 1.Yes The commune of the Plains (six towns of Seine-Saint-Denis) in June 2021; its neighbour Est Ensemble (9 communes of Seine-Saint-Denis) should also get it. Their distance from the capital, the many construction sites they own in Greater Paris, the prospect of the 2024 Olympics, and their recorded rent surge (an average increase of 21.6% from 2009 to 2019) are reasons to win this controversy. The governor’s decision.