Rent freeze for properties with an E energy performance rating of E: the new frontier of decency and rental risk

The logic is simple: after classes F and G entered into the freeze scheme since August 2022, the expansion to "E" is expected to be the next step.

For both landlords and tenants, this is a clear signal: the risk is materializing, the value of the rental asset is at stake today and not tomorrow.

Understanding rent freezes

The rent freeze, established by the Climate and Resilience Law, prohibits any rent increase for the most energy-intensive housing: upon re-letting, upon lease renewal and through annual indexation (IRL).

In other words, the rent remains fixed until the property is renovated to achieve better energy efficiency. This freeze, already in place for F and G rated properties, directly hinders the profitability and asset value of the properties concerned.

For homes rated E, the measure is not yet in effect, but all indications are that it will be. The legislature is proceeding in stages: first F and G, soon E, then D in the more distant future. The objective is clear: to accelerate the energy transition of the housing stock.

The E label, a warning sign

Long considered “acceptable,” energy efficiency class E is becoming a risk indicator. E-rated properties often have high energy consumption, poor thermal comfort, and are increasingly less attractive on the market. Tenants are paying close attention to the Energy Performance Certificate (EPC), banks are now incorporating energy performance into their analyses, and investors are reassessing their strategies.

An invisible “pre-freeze” is already taking place: E-rated housing units are gradually losing value and rental flexibility, even before regulations are imposed.

Anticipate in order to preserve value

When a rent freeze or rental ban affects Class E housing, the consequences will be immediate: frozen rents, urgent repairs, decreased profitability, and a devaluation of the property. Landlords who have anticipated this by commissioning an energy audit, planning insulation work, or seeking appropriate financing will retain their ability to act.

Conversely, those who wait for the text to be released will bear the cost of the constraint: urgent renovation, unavailable craftsmen, and one-sided negotiation.

Act rather than suffer

The rent freeze for properties with an energy performance certificate (EPC) rating of E is not an abstract threat: it is a predictable step in French energy policy. Acting now means securing your assets, protecting your profitability, and contributing to the ecological transformation of the rental housing stock.

Every month gained represents preserved value, maintained freedom, and retained opportunity. The time for waiting is over: the time for anticipation begins.

Tribune by Eric Houdet, Founder of Homapi (LinkedIn).