To reduce the efforts required of the departments, Michel Barnier plans to increase transfer taxes for consideration (DMTO) by 0.5 points for three years. An announcement made on Friday, during the Conference of the Departments of France, which could cause the real estate sector to plunge again by putting a new stop to purchases, according to professionals, details Le Parisien in particular.
A bolt from the blue for the real estate sector, which is struggling to keep its head above water. The Prime Minister, Michel Barnier, proposed, Friday, November 15, to strengthen the departments' coffers by one billion euros by increasing transfer taxes for consideration (DMTO) by 0.5 points for three years. Concretely, as explained The Parisianthis would result in an increase in taxes collected during the purchase of real estate by notaries on behalf of municipalities, the department and the State.
First-time buyers would be the first affected
These costs, called “notary fees”, but which are in reality purchase costs – and are currently on average 8% of the cost of a property in old properties and 2 to 3% in new properties, specifies Capital -, should therefore increase. According to Maël Bernier, spokesperson for the broker Meilleurtaux, it will be necessary to count 1,000 euros in additional notary fees for a purchase of 200,000 euros, and 1,500 for a price of 300,000 euros paid.
Bad news for real estate players but also buyers. Particularly young people: “These costs are rarely financed by banks. As the contribution is low among the youngest, this will make their first purchase even more difficult”lamented Maël Bernier on X. “This can be blocking the financing files of young people who cannot be helped by their parents”she added. “This increase risks discouraging first-time home buyers and compromising the timid recovery in property purchases observed following the – beneficial – drop in interest rates”estimated the National Real Estate Federation (Fnaim).
“Temporary taxes, everyone knows that we rarely come back on them”
Its president, Loïc Cantin, does not believe in the temporary nature of the measure either: “Temporary taxes, everyone knows that we rarely come back to them or a long time later”he castigated the Parisian. “Owners do not have to pay for the lack of anticipation of these communities” faced with declines in transactions in recent years, he added.
Real estate agencies could also suffer: “This could have perverse effects such as a slowdown in the market, therefore fewer sales and therefore fewer DMTOs. In reality, we are picking the pockets of the French”denounced Yann Jéhanno, head of the Laforêt network.
The proposal must still obtain the green light from the National Assembly. Its application will depend on the communities.
