rents will explode in France and you will not like the reason

For several months, rents in France have seen their prices soar. And this situation is not about to get better…

The inflation that has been hitting France for several years is affecting many sectors, including housing. This is why rents are becoming more and more expensive in the region.

CAF assistance to pay your rent

If there is one help that the French know to pay their rent, it is the APL. In the region, personalized housing assistance offers significant financial support, whether you are student or employee.

Every month, the CAF pays this aid to help you cover your rental costs. And, for benefit from APLyou must meet certain criteria.

First of all, your accommodation must be your main residenceThat is, you must live there at least eight months a year, and your name must be on the lease.

Your income must be lower than the ceiling set by the CAF each year. You must not have any family ties with your lessor, and no member of your tax household must be subject to tax on real estate wealth.

In addition, your accommodation must be covered by an agreement between the owner lessor and the State. It is they who set the conditions such as the evolution of the rent and the duration of the lease.

Please note that roommates may also be eligible for specific aid. In short, this help is crucial, but many do not use it, despite the numerous aids available.

Amounts that continue to climb

Recently, the government introduced a mechanism to contain the increase in rents in the face of inflation. However, these increases were intended to be limited to a specific percentage.

However, this price shield on rents ended on March 31, which represents a bad new for tenants. This system set an annual increase ceiling of 3.5% in the Rent Reference Index (IRL).

It prevented owners from implementing increases above that threshold. With its disappearance, this 3.5% limitation is no longer in effect, which could have a significant impact on tenants.

Initially scheduled for March 2023, the end of the shield against excessive increases rents has been extended until March 31, 2024. Due to the economic situation in France marked by increasing inflation.

Now there are no more restrictions on variations in the Reference Index Rents (IRL). While the tax administration remains strict on tax returns, landlords now have more latitude to adjust rents.

This situation is causing great concern among many tenantsDespite lower inflation this year according to INSEE, the rental reference index continues to increase, which could translate into potential rent increases.

The end of the price shield on rents

Although rent increases remain moderate, defense associations Tenants are urging the government to implement new measures. They are proposing to extend the rent shield again.

And this, until a return to pre-crisis inflation levels. They thus suggest the creating a device compensation for low-income households.

Some households benefited an exceptional bonus last October to deal with inflation. On the other hand, owners express financial concerns, stressing that the end of the tariff shield will allow them to restore their profitability.

They highlight the high costs related to renovations and housing maintenance. Often difficult to cover with the famous rent shield.

For the owners, it is therefore legitimate that the rents evolve with inflation. Despite a lower property tax this year.