The end of an emblematic law. In force since 2014, the Pinel law is experiencing its final hours. The end of the system is set for December 31, 2024, with nothing to replace it. The Pinel law allowed any investor purchasing new housing with the aim of renting it to benefit from a tax reduction. This was the last investment incentive lever still in place.
According to a report from the Court of Auditors published to take stock after 10 years of implementation, this investment incentive “has only partially achieved its objectives in tense areas”. In seven years, from 2014 to 2021, there have been between 42,500 and 550,000 homes built and renovated solely thanks to the existence of this law, write the wise men of rue Cambon, at a cost of more than four billion dinars. euros during this period.
Over time, this has become one of the criteria most scrutinized by buyers. Mandatory since 2006, the energy performance diagnosis (DPE) will see new developments in 2025. Housing classified G on the label – the worst – will be prohibited for rental in mainland France from January 1. Around 600,000 homes are affected by this new ban. Goods rated F on the energy label will be affected in 2028 and those categorized as E in 2034. Another major change: DPEs made between January 1, 2018 and June 30, 2021 will no longer be valid. Owners therefore have the obligation to redo one to put their property up for sale. The new DPE will be valid for ten years.
Bad news for those who are used to renting their accommodation on Airbnb. In the coming days, the so-called anti-Airbnb law will lower the tax deduction on rental income from unclassified furnished tourist accommodation from 50% to 30%. The rental income ceiling beyond which the owner is not entitled to this reduction is also reduced. The threshold increases from €77,700 to €15,000 of annual rental income. Objective ? Encourage owners to rent out their property for longer periods.
The amount of property tax, which concerns 32 million owners in France, will increase further in 2025. “The average amount of property tax which amounted to 1,034 euros in 2023, then to 1,074 euros in 2024, will increase to at least 1,088 euros in 2025”, recalls Le Journal du Net. Municipalities will have the possibility of reassessing the tax rate upwards if they wish. In 2024, Nice won the prize for the highest increases, with a 2024 property tax which soared by almost 22%.
