Budget: MPs reach a compromise to revive affordable housing

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 demands from the left.

To try to address 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 out, long demanded by the right and framed under the impetus of the socialist and green groups.

The new status provides for a tax depreciation of 3,5% per year for a new intermediate rent dwelling, 4,5% for a social dwelling and 5,5% for a very social dwelling, up to a limit of 80% of the value of the property and 8.000 euros per year for a maximum of two dwellings.

For renovated older properties, the rates are set at 3%, 4% and 5%.

Rents must comply with the ceilings for subsidized housing and rentals to family members will be excluded.

This is "a boost to private investment to generate sustainable and affordable housing", stressed the socialist Inaki Echaniz, in return for "a real commitment" from the government to review the levies on social landlords.

Since 2018, these landlords have been subject to the Solidarity Rent Reduction (RLS), a levy on their revenues which forces 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, François Jolivet (Horizons) called on the Minister of Public Accounts Amélie de Montchalin "to listen" to the demands of the left in an "Assembly without an absolute majority".

The minister has pledged to reduce these levies, without yet confirming the amount of 900 million euros demanded by the head of the Green MPs Cyrielle Chatelain, compared to 1,4 billion planned for 2026 according to the federation of social landlords.

She cited the need to preserve budgetary balance.

An insufficient commitment for the environmentalists who ultimately voted against it, while saying they reserved the right to change their position in the second reading if there was any movement on the part of the government.

The Communists and La France Insoumise also rejected the measure. "A tax break that will further benefit the wealthiest, the property owners," denounced Claire Lejeune (LFI).