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Paris rent caps: 42% of rental properties “illegal”
Effective since 1st August 2015 rent control is not being observed by a large portion of landlords, according to a new study. Implemented in Paris as a trial, there is little chance the regulation will spread to the Île-de-France region.
The National Association of Consumers (CLCV) has found that 42% of properties advertised for rent are not adhering to rent caps enforced in the French capital since August 2015. The measure was applied to Paris as a trial, in an effort to “limit the abuse of power by some property owners and facilitate access to housing for low-income people.”
In order to “verify the extent to which the measure is being respected,” the CLCV carried out a study of 650 rental listings on property sites such as Fnaim, le Bon Coin, PAP and Century 21. The results of the study revealed that 42% of rents exceeded the maximum prices allowed by the new regulation and that they cost renters an average of 146.51 euros more per month than the highest amount applicable.
The CLCV notes that it is “mostly small properties that are affected,” citing as an example a studio in the Sorbonne area which exceeds the legal rental amount by 200 euros. Furnished rentals are also more affected than unfurnished properties. The CLCV notes that these properties are mainly rented out by “young people with limited resources, making these practices even more unacceptable.”
Additionally, the study found that in 47% of cases property advertised above allowed amounts were leased by the owners themselves, 30% of listings belonged to real estate professionals. “By their status and obligations, both legal and ethical, professionals must refuse any ad for a property that does not respect rent caps,” states the CLCV.
For a variety of reasons, rent control in the capital has not been the success Paris Mayor Anne Hidalgo had hoped. Forced to cap their rents — and thus reduce the profitability of their investments — many rental investors have simply chosen to sell off their properties instead, and, clearly, a large number of those who remain are not respecting the law.
While socialist regional candidate Claude Bartolone made his wish to see rent caps extended to cover the Île-de-France region as a whole clear, his defeat in this month’s regional elections may mean that rent control will not be spreading after all. The right-wing candidate elected instead, Valérie Pécresse — of the Les Républicains party — has expressed her lack of the support for the measure, stating that where real estate is concerned “the priority is to build.”
Photo credit: Pixabay / Alexandria