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“The tax measures planned for 2025 will have a positive effect on the old property market”
The Pinel system, named after the former Minister of Housing Sylvia Pinel, will disappear on December 31, 2024.
Came into force in 2014, it allowed individuals investing in new or renovated housingto benefit from a income tax reduction under certain conditions, including rental in collective housing at capped rent levels and tenant resources, for a minimum duration of 6 yearsand in areas where it is particularly difficult to find accommodation.
Ten years and what results? According to the Court of Auditors, the system has not “only imperfectly filled” its objective of building housing for low-income households in stressed areas.
More real estate transactions but higher rents
On the bad side, the report points to a multiplication, even superposition, of tax measures for nearly 40 years, leading to a “form of dependence of promoters-builders”.
Pinel also mainly attracts wealthy investors, looking for a tax exemption tool continue the authors, specifying that this represents an overall cost for public finances of around 7.3 billion euros in ten years. Pinel residences are, moreover, mainly located in “tense areas” and not in “very tense areas”. Among the other disadvantages, the Court of Auditors cites landlords preferring to recover or resell their property the day they no longer benefit from the system.
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