Budget: Sébastien Lecornu announces an additional 400 million euros for social housing providers

"The construction and renovation of affordable housing is primarily the responsibility of social landlords. We will therefore increase their resources by 400 million euros so that they can build more and renovate better," the Prime Minister said in a speech.

Emmanuelle Cosse, president of the social housing movement, the Union sociale pour l'habitat (USH), understands from this declaration that the additional resources granted to landlords will result in a smaller levy on their revenues.

Thus, the solidarity rent reduction (RLS) would, according to Ms. Cosse, amount to 900 million euros, instead of 1,3 billion in the initial draft of the finance bill (PLF) for 2026.

This levy had been lowered to 1,1 billion euros in 2025.

She expressed her delight to AFP at this announcement, which demonstrates a "recognition of the needs" of social housing providers. "Little by little, the pressure is being eased and more room for maneuver is being restored."

But Emmanuelle Cosse also points out that a withdrawal of "275 million euros for the national housing aid fund" is planned, "instead of 75 million euros in 2025".

"In the end, the pressure on social housing landlords is at the same level as last year, but we have made progress compared to the initial proposal of the draft budget law," which predicted a record total of more than 2 billion euros in levies, says Emmanuelle Cosse.

To "revive private rental investment", the government plans to "lay the foundations for a private landlord status", a measure that will give tax advantages to individuals who buy a property to rent out.

The Prime Minister also indicated the continuation of the MaPrimeRénov' energy renovation aid, a scheme deemed "useful and effective", but which requires "more action against abuse and misuse".

Mr. Lecornu also announced that he was abandoning the "blank year for housing allowances" (APL) envisaged in the initial draft budget.

"This budget must prioritize youth," Mr. Lecornu also stated. "Student grants will be maintained," "universities and research institutions will also see their resources strengthened," and "2.000 additional positions will be created" in the national education system, "particularly to accommodate our children with disabilities," the head of government added.

Illustrative image of the article via Depositphotos.com.