Despite inflation, government renounces to freeze rents

The increase in rents should be capped at 3.5 %, for a year. Housing aids will be revalued in July.


The Ministry of Housing calls, in an emergency, this Monday, June 27, the National Housing Council (CNH), advisory body bringing together housing players, with, among other things, on the menu, the revaluation of rents. Tenants’ associations hoped for a freezing of rents, a year or two, as the Minister of the Economy had suggested, Bruno Le Maire, during a meeting on May 17. But the measure finally subject to the CNH debate responds rather to the expectations of the owners, private as social: the fixation at 3.5 % of the evolution of the rents, which corresponds to the expected value of their revaluation index (IRL ) of the second quarter, to be published on July 15.

No anti-inflationary gesture, therefore, on the part of the government: on an average monthly rent of 650 euros, such revaluation represents 22.75 euros increase, or 273 euros per year, an additional cost that is added to all the others, for the most modest among the 14 million tenant households.

housing aid upset from July 1 2>

The evolution of the IRL worries consumer associations insofar as it has, certainly with delay, the consumer price index, excluding tobacco and rents, smoothed over twelve months. However, inflation has accelerated since January 2022. +5.6 % in March, expected at +6.8 % by December according to INSEE, it should, over the year, be established at +5, 5 %. Its impact on the IRL has already been felt up to +2.49 % in the first quarter, +3.5 % in the second quarter and should exceed +5 % in the third quarter.

By way of consolation, the cap of the increase in rents at 3.5 %, which will be the subject of an article in the amending finance bill scheduled for July, would apply until July 2023 . Personalized housing aid should be revalued from the 1 er July, and not the 1 er October as it is habit, 3.5 % also which, for the state budget, represents an additional expenditure of 168 million euros.

Jean-Yves Mano, President of the Association Consumption, Housing and Living Environment (CLCV), nevertheless protests:

“We do not understand the abandonment of the freeze of rents which has the immense advantage of costing the state and participating in the fight against inflation, while the government has not deprived itself To freeze the income of retirees, civil servants and even to reduce housing allowances, whose revaluation envisaged today is far from concerning all the tenants and only compensates for a share of the rent. Act on purchasing power and its adoption by a majority of deputies. “

/Media reports.