the Prime Minister's shock measures to revive the sector in 2025

The Prime Minister, François Bayrou, presented several avenues to revive access to property, in a context marked by a deep real estate crisis. However, the conjunction of an expansion of the zero-rate loan (PTZ) and an increase in notary fees raises questions. If the first measure meets the needs of first-time buyers, the second complicates access to housing.

Borrowing rates noted on 01/24/2025

An expanded PTZ to facilitate access to property

On January 16, François Bayrou clarified his intentions regarding housing in a letter addressed to the presidents of the socialist groups in Parliament. In line with his declarations during the general policy speech of January 14, 2025, the Prime Minister announced his support the extension of the zero-rate loan (PTZ) to the entire territory and to all types of new housingincluding individual houses.

Currently, the PTZ is reserved for first-time buyers wishing to purchase new collective housing in so-called “tense” areas (where demand greatly exceeds supply). Expanding it to the entire territory and to all types of goods could offer significant leverage for facilitate access to property.

The Minister of Housing, Valérie Létard, already supported this proposal, stressing that it is essential to make the purchase of houses more accessible, particularly in less dense areas. This measure should therefore respond to a growing need for housing in certain regions, while stimulating the construction of new properties. According to Capital, Pascal Boulanger, president of the Federation of Real Estate Developers (FPI), considers that the extension of the PTZ constitutes a key tool for relaunching the production of new housing.

Increased aid for building mayors and social landlords

To “relaunch rental investment and home ownership, and support builder mayors through a system of encouraging investment, including private investment” as announced during his general policy speech, the Prime Minister proposed two measurements:

• « increase state financial assistance for building mayors, to the tune of 100 million euros.” These additional funds will be intended to support housing construction and renovation projects;
• reduce social landlord contributions to the Social Rental Housing Guarantee Fund. This fund, managed by the Caisse des Dépôts, plays a key role in guaranteeing loans granted to social housing organizations and helping them in the event of financial difficulties.

A shocking increase in notary fees

However, in his missive, François Bayrou also mentioned an increase in transfer taxes for valuable consideration (DMTO) which constitute part of the notary fees. This increase, which could reach 0.5 points, would be applied over a period of three years and intended to benefit the departments. The Minister of Regional Planning, François Rebsamen, confirmed that the government would support this increase, included in the 2025 draft budget, examined in the Senate.

For property buyers, this increase in notary fees would have a direct impact on the cost of transactions. According to Elodie Frémont, notary in Paris, this increase “will represent an additional 500 euros of DMTO for each 100,000 euros of the purchase price of the property”.

Although this increase aims to support local finances, it is perceived by real estate professionals as an additional obstacle in an already fragile market.