MPs voted on Friday, November 14, to create a tax system encouraging individuals to invest in affordable rental housing, the result of a compromise between groups from the left, the center and the right.
The measure was adopted by 158 votes to 49, in exchange for a commitment from the government to significantly reduce the levies imposed on social landlords, in response to the demand of the left.
To try to respond to the housing crisis, they approved the creation of a “private landlord status”, a tax advantage intended to encourage individuals to invest in housing to rent it, long demanded by the right and regulated under the leadership of socialist and environmental groups.
The new status provides for tax depreciation of 3.5% per year for new housing at intermediate rent, 4.5% for social housing and 5.5% for very social housing, up to 80% of the value of the property and 8,000 euros per year for two housing units maximum. For old renovated buildings, the rates are set at 3%, 4% and 5%. Rents must respect the ceilings for approved housing and rental to family members will be excluded.
“A tax exemption that will benefit the wealthiest”
It is “a boost to private investment to generate sustainable and affordable housing”underlined the deputy (Socialist Party) of Pyrénées-Atlantiques Iñaki Echaniz, in return “a real commitment” of the government to review the levies on social landlords.
Since 2018, the latter have been subject to the solidarity rent reduction (RLS), a levy on their revenue which requires them to lower rents for low-income households, without full compensation from the State, reducing their capacity to build or renovate.
In the search for compromise, the deputy (Horizons) of Indre François Jolivet called the minister responsible for public accounts, Amélie de Montchalin, “to hear” the demands of the left in a “Assembly without absolute majority”.
The minister has committed to reducing these levies, without confirming for the moment the amount of 900 million euros demanded by the president of the group of environmentalist deputies, Cyrielle Chatelain, against 1.4 billion euros planned for 2026 according to the federation of social landlords. She cited the need to preserve a balanced budget.
An insufficient commitment for the Ecologists who ultimately voted against, while saying they reserve the possibility of changing their position at second reading if the government modifies its positions. The communists and La France insoumise (LFI) also rejected the measure. The MP (LFI) for Essonne Claire Lejeune denounced “a tax exemption which will still benefit the wealthiest, the owners”.
