Senators approve the creation of a "private landlord status" to boost housing

The Senate approved on Sunday November 30 the creation of a "private landlord status", a tax incentive scheme for individuals seeking to invest in rental housing, reinforcing a compromise that had already emerged in the National Assembly in recent days.

In the context of the examination of the draft state budget for 2026, the two houses of Parliament appear to have converging views on how to respond to the housing crisis.

The Senate voted on Sunday evening for a measure already approved by the deputies: a tax advantage intended to encourage individuals to invest in housing to rent it out.

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.

This scheme would make it possible to "neutralize in 25 years an operation with an investment of 300.000 euros" for a new intermediate housing unit, illustrated the Minister of Public Accounts Amélie de Montchalin.

The minister managed to convince the Senate majority, an alliance between the right and the centrists, to reduce the scope of the measure that the senators initially proposed, which was much more advantageous for buyers, but much more costly for public finances.

"Today, there is a shortage of rental housing on the market throughout France. And for that, we need an ambitious plan," explained centrist senator Amel Gacquerre, regretting the government's "watered-down" version.

It was ultimately the government proposal, the result of a long compromise in the National Assembly in mid-November, that was adopted by the Senate.

Ms. de Montchalin estimated the cost of the measure at 1,2 billion euros by 2028, for new housing alone.

These votes are not yet final as the draft budget will continue to be examined in Parliament until at least mid-December.