Reviving the private rental supply in France

Appendix A — accessible HTML transcription of the 2025 document

Privacy: the author’s personal contact details appearing on page 1 of the source document are deliberately redacted from this public transcription and from the facsimiles displayed on the site.

David SALVAN — September 1, 2025

To

Members of the National Assembly,

Members of the Government,

Prime Minister,

Hôtel de Matignon

57, rue de Varenne

75700 Paris

Subject: Proposals for urgent reform of the private landlord status to revive rental investment. Letter to the Members of the National Assembly and the Government

Enclosures:

• Detailed proposed amendments for each article of law mentioned

• Comparison with European legislation more favorable to landlords

• Economic impact study on the rental market

Members of the National Assembly,
Members of the Government,
Prime Minister,

The housing crisis is no longer a threat: it is a daily reality for millions of French people. Faced with the collapse of rental supply, there is an urgent need to restore the confidence of private landlords.

As a small landlord living on my rental income, I am today discouraged from continuing my investments. Yet I am one of those thousands of owners who house families, maintain the housing stock and contribute to the balance of the market.

This letter is a call for clear-sightedness. In 2025, the rental market is marked by a shortage of supply, an explosion in demand and plummeting affordability. In Paris or Lyon, up to 70 applicants turn up for a single home, as reported by France Info and Le Parisien.

The construction of new housing is falling sharply: according to the Ministry of Ecological Transition, only 27,500 housing starts were recorded in July 2025, a drop of 14% compared with the pre-Covid average.

At the same time, the Union sociale pour l’habitat reports that 2.8 million households are waiting for social housing, a historic record.

In 2026, the private landlord status is being presented as a revolution. Yet the texts being prepared only concern future acquisitions, leaving aside millions of owners who have already invested. This exclusion is unfair and counterproductive.

I propose here a series of concrete reforms to protect existing landlords, revive rental investment and respond to the housing crisis.

It is urgent for the public authorities to take pragmatic measures to restore landlords’ confidence and revive private rental investment; otherwise the housing crisis will continue to worsen.

I. FIGHTING ILLEGAL OCCUPATION: IMMEDIATE EVICTION OF SQUATTERS

Current problem

Despite the ASAP law and recent legislative changes, owners remain helpless in the face of illegal occupation, particularly when squatters change the locks and meters in order to settle in permanently.

Proposed legislative amendments

1. Amendment of Article 226-4 of the Penal Code. Add a paragraph: "The unauthorized change of locks or service contracts (electricity, gas, water) in a home belonging to another person also constitutes a violation of domicile and an irrebuttable presumption of illegal occupation."

2. Creation of a new Article L. 613-6-1 of the Construction and Housing Code. "Any occupation of a home without title established by a change of locks or meters without the owner’s authorization constitutes a permanently flagrant offense allowing the immediate intervention of the police on the owner’s simple complaint, with no time limit from the discovery of the facts."

3. Amendment of Article 809 of the Code of Civil Procedure. Create an absolute emergency procedure allowing eviction within 48 hours upon a simple finding of an unauthorized change of equipment, through recourse to the police and gendarmerie without the need to refer the matter to the overloaded courts.

II. CONTROL OF CHANGES OF UTILITY CONTRACTS

Creation of a Utility Contract Change Authorization Document (DACA)

1. Amendment of the Energy Code (Articles L. 321-14 and L. 431-7). Make it compulsory to present the landlord’s written authorization for any change of electricity or gas contract in a rented home.

2. Amendment of the Public Health Code (Article L. 2224-12). Extend this obligation to water contracts.

3. Insertion into Article 1728 of the Civil Code. Add: "The tenant may not change service contracts without the landlord’s prior written authorization, on pain of automatic termination of the lease."

4. Financial penalties for energy and water suppliers

Creation of a new Article L. 332-1-1 of the Energy Code: "An electricity or gas supplier that accepts a change of contract in a home without having ensured the landlord’s written authorization is liable to a fine of 10,000 euros. Half of this fine is paid to the injured owner as damages."

Creation of a new Article L. 2224-12-1 of the Public Health Code: "A water distributor that accepts a change of contract in a home without having ensured the landlord’s written authorization is liable to a fine of 10,000 euros. Half of this fine is paid to the injured owner as damages."

Amendment of Article L. 141-1 of the Consumer Code. Add to misleading commercial practices: "Accepting a change of service contract without verifying the owner’s authorization in a rented home."

III. ACCELERATED RECOVERY OF UNPAID RENT

Amendment of Articles L. 613-1 et seq. of the Code of Civil Enforcement Procedures

Create a special procedure for unpaid rent:

Automatic wage garnishment after 30 days of arrears

Abolition of the prior formal notice

Direct enforcement by a bailiff upon presentation of the lease and proof of non-payment

Automatic recovery of bailiff’s fees

Amendment of Article L. 613-2 of the CPCE to incorporate these provisions specific to rental debts.

IV. REFORM OF THE ENERGY PERFORMANCE DIAGNOSIS

Problems identified

Ban on renting out “thermal sieves” even though the supply of housing is insufficient

Prohibitive costs of energy renovations

Off-putting processing times for public grants (more than a year)

Diagnostics to be renewed every 6 years, representing a significant recurring cost

Reform proposals

1. Amendment of Article L. 173-2 of the Construction and Housing Code. Replace the ban with: "Renting out a home whose energy performance diagnosis reveals energy consumption above the thresholds set by decree is authorized subject to prior written information to the tenant."

2. Amendment of Decree No. 2006-1114 on technical diagnostics

Extend the validity of diagnostics from 6 to 15 years except in the event of a structural change to the home

Reduce the number of mandatory diagnostics to safety diagnostics only (asbestos, lead, electricity, gas)

3. Principle of freedom of contract. Allow the renting of homes rated F and G with a specific lease stating the energy performance, in accordance with the principle of freedom of contract in Article 1103 of the Civil Code.

The free market as a natural regulator

In a market economy:

If a home uses too much energy, it will not find a tenant

The owner will have an economic incentive to renovate in order to stay competitive

The tenant, free to choose, can refuse or negotiate according to their priorities (rent, location, comfort)

Banning lettings amounts to short-circuiting the natural mechanisms of the market, where information and freedom of choice are enough to regulate.

Make people responsible rather than ban

A ban creates perverse effects:

Reduced rental supply, particularly in rural or high-demand areas

Exclusion of low-income households, who might prefer an energy-hungry but affordable home

A more rigid market, with empty homes and penalized owners

Conversely, making people responsible through the contract allows:

Local and individual adaptation

Voluntary mobilization of owners toward renovation

Better information for tenants

The energy transition is a priority, but it must not come at the expense of the fundamental principles of civil law and economic freedom. By allowing homes rated F and G to be rented under clear contractual conditions, the State respects:

The principle of freedom of contract (Article 1103 of the Civil Code)

The functioning of the rental market

The individual responsibility of citizens

Change does not come from banning, but from regulating intelligently.

V. REFORM OF ENERGY POLICIES

Problems with heat pumps and energy renovation

1. Inconsistent public grants. Air-to-air heat pumps, an economical and efficient solution, receive only a few hundred euros in energy savings certificates (CEE) on the pretext that they can produce cooling, even though they are an efficient heating solution.

2. Contradiction with the French energy mix. France has low-carbon nuclear power, which makes radiant electric heaters perfectly compatible with climate objectives without requiring costly investment in heat pumps.

Reform proposals

1. Equal treatment in MaPrimeRénov'

Extend single-measure MaPrimeRénov' grants to air-to-air AND air-to-water heat pumps at the same level as other heating equipment

Maintain equivalent funding for THPE gas boilers when installing a heat pump is physically impossible (technical constraints, degraded performance, building configuration) or would require disproportionate works

2. Revision of the electricity emission factor in the DPE. Take into account the reality of France’s low-carbon electricity mix when calculating the DPE electricity emission factor, by revising the current coefficient downward to reflect nuclear power’s majority share of our electricity production.

3. Obligations differentiated by use. Require the installation of heat pumps in houses ONLY when they are bought to be rented out, allowing the buyer to factor this cost into the initial financing.

VI. ADAPTING PLANNING LAW TO ENERGY RENOVATIONS

Current problems

Large-scale renovation programs come up against local planning regulations that prohibit:

External thermal insulation (ITE)

Sarking techniques for roofs

Installing heat pump outdoor units on façades

Necessary legislative amendments

1. Amendment of Article L. 152-6 of the Urban Planning Code. Add: "Works to improve the energy performance of existing buildings may not be refused on the grounds of non-compliance with the external appearance rules of the PLU, provided they comply with the technical requirements defined by decree."

2. Creation of a new Article L. 111-6-3 of the Urban Planning Code. "External thermal insulation works, sarking techniques and the installation of efficient heating equipment benefit from an automatic right of derogation from local planning rules, subject to compliance with the minimum architectural requirements defined by ministerial order."

3. Amendment of Article R. 111-23 of the Urban Planning Code. Provide for systematic derogations for energy renovation equipment.

VII. PRIVATE LANDLORD STATUS: RETROACTIVE APPLICATION

Problem

Current plans for a landlord status would only benefit future acquisitions, unfairly excluding current owners who have invested in rental property.

Proposition

Creation of an Article 199 septvicies of the General Tax Code. Extend the benefit of the favorable tax status to all landlords owning property on January 1, 2026, whatever the acquisition date, under an accelerated twenty-year depreciation regime.

VIII. SIMPLIFICATION OF RENOVATION GRANTS

Reforms of the ANAH scheme

1. Amendment of Decree No. 2019-1096

Processing times reduced to 3 months maximum

Full digitization of procedures

Creation of a one-stop shop

2. Higher ceilings and coverage rates. Increase grants so that they genuinely cover at least 60% of energy renovation costs.

Financing the remaining cost

Focus on financing the remaining cost: for a "State Loan with Social and Energy Impact"

The finding: the dead end of the remaining cost. At present, households receiving the maximum rate of public grants (MaPrimeRénov’, CEE) face an insurmountable remaining cost. Traditional banking channels almost systematically refuse loans for these residual amounts (profiles deemed “risky”, debt ratio, age or low income). Result: the works are not carried out and the housing stock deteriorates.

The solution: a zero-interest State loan (PTZ-E) without a bank intermediary. The State must take the place of private banks and directly finance the remaining cost through a zero-interest loan managed by a public body (such as the Banque des Territoires or Anah).

1. For landlords: repayment from rental income

Mechanism: The loan is repaid by deducting a fixed percentage from the rents received (for example 10 to 15%).

Resale guarantee: If the property is sold before full repayment, the outstanding balance is automatically deducted from the sale proceeds by the notary. This secures the State’s claim while relieving the owner of the pressure of immediate repayment if they do not have the cash.

2. For low-income owner-occupiers: the 20-year shield

Target: Owners with a net after-tax income of less than €1,500 a month.

Terms: For these households, the repayment period for the remaining cost is extended to 20 years. The aim is to spread the financial burden so that it is offset by the energy savings achieved on heating bills, thus guaranteeing that their remaining disposable income is preserved.

3. Benefits for public finances

Non-inflationary: It is not a lost subsidy but a repayable advance.

Effectiveness: Immediate unblocking of renovation projects, support for the building sector and a reduction in fuel poverty.

Security: The State’s preferential claim on the notarized sale guarantees a recovery rate close to 100%.

CONCLUSION

If adopted, these reforms would massively revive private rental investment and help resolve the housing crisis. The urgency of the situation justifies adopting pragmatic measures that favor increasing rental supply rather than maintaining counterproductive regulatory constraints.

These reforms are not privileges but measures of fairness and effectiveness. The private landlord is an essential player in housing in France. It is time to recognize their role, protect them and restore their confidence

Like many of my fellow citizens, I am counting on your commitment to carry these proposals forward and restore the confidence of landlords, who are essential players in housing policy.

Yours faithfully, Prime Minister, Members of the Government, Members of the National Assembly, with the assurance of my highest consideration.

Sources cited

70 applicants for one home: This figure is mentioned in several reports and analyses on rental market pressure, notably by SeLoger. The Paris rental market in 2025:
👉 The Paris rental market in 2025, SeLoger

Falling construction of new housing: Official data are published by the Ministry of Ecological Transition. An article in Le Télégramme summarizes the July 2025 figures well:
👉 New housing: number of building permits stable, Le Télégramme

2.8 million households waiting for social housing: This figure comes from estimates by the Union sociale pour l’habitat (USH), reported by Capital:
👉 Social housing: 2.8 million applications in the first quarter of 2025, Capital

Report on poor housing: The Fondation Abbé Pierre publishes a detailed report every year. Here is the link to the 30th report of 2025:
👉 30th report on the state of poor housing in France, Fondation pour le logement

Housing crisis and access to home ownership: Le Parisien published an analysis of the difficulties of buying and the pressures on the market:
👉 Housing crisis: buying in France is getting ever harder, Le Parisien

DETAILED PROPOSED AMENDMENTS

AMENDMENT No. 1 - PENAL CODE

Article 226-4 of the Penal Code

Current text: "Entering or remaining in another person’s home by means of maneuvers, threats, assault or coercion is punishable by one year’s imprisonment and a fine of 15,000 euros."

Proposed amendment: Add a paragraph: "The unauthorized change of locks or service contracts (electricity, gas, water) in a home belonging to another person also constitutes a violation of domicile and an irrebuttable presumption of illegal occupation. This offense is punishable by two years’ imprisonment and a fine of 30,000 euros."

AMENDMENT No. 2 - CONSTRUCTION AND HOUSING CODE

Creation of Article L. 613-6-1 of the CCH

Proposed new article: "Art. L. 613-6-1. Any occupation of a home without title established by a change of locks or meters without the owner’s written authorization constitutes a permanently flagrant offense allowing the immediate intervention of the police on the owner’s simple complaint, with no time limit from the discovery of the facts.

The prefect orders the eviction within twenty-four hours of the complaint, upon presentation of: 1° The title deed or management mandate; 2° The finding of the unauthorized change by a judicial police officer or judicial officer; 3° The absence of the owner’s written authorization.

Where minors, pregnant women or vulnerable persons are present, the State representative immediately notifies the departmental services responsible for emergency accommodation of the obligation to propose a rehousing solution within a maximum of forty-eight hours of the prefectoral decision. The eviction is not suspended by this period: it is carried out when it expires, whether or not an accommodation solution has actually been found. If no solution has been proposed within this period, the State pays, from its own budget, for hotel accommodation for the persons concerned for a period not exceeding fifteen days, during which the social services must imperatively identify a lasting solution.

The prefect’s refusal or failure to provide police assistance under the conditions and within the time limits provided for in this article engages the State’s no-fault liability. The injured owner is compensated under ordinary law, on the combined basis of Articles L. 153-1 of the Code of Administrative Justice and L. 911-9 of the same code, according to a minimum scale set by decree comprising:

- The amount of rent and charges not received during the period of unlawful occupation;

- The costs of restoring the home, upon presentation of quotes;

- A fixed indemnity for non-pecuniary damage of at least five thousand euros.

This article applies without prejudice to the criminal penalties provided for in Article 226-4 of the Penal Code

AMENDMENT No. 3 - CODE OF CIVIL PROCEDURE

Amendment of Article 809 of the CPC

Current text: "The president may always, even where there is a serious dispute, order in interim proceedings the protective or restorative measures required either to prevent imminent damage or to put an end to a manifestly unlawful disturbance."

Proposed amendment: Add a paragraph: "In the event of illegal occupation of a home established by an unauthorized change of locks or utility contracts, the president rules within 24 hours on the owner’s application and orders immediate eviction without further formality, including where minors are present. The decision is provisionally enforceable."

AMENDMENT No. 4 - ENERGY CODE

Creation of Article L. 332-1-1

Proposed new article: "Art. L. 332-1-1. - Every electricity or gas supplier must require, before any change of contract in a home, the presentation of a Utility Contract Change Authorization Document (DACA) signed by the landlord.

This document, the template of which is set by ministerial order, must include: 1° The identity and signature of the landlord; 2° The address of the home concerned; 3° The identity of the authorized tenant; 4° The period of validity of the authorization; 5° A verification code transmitted electronically.

A supplier that accepts a change of contract without this document is liable to a fine of 10,000 euros. Half of this fine is paid to the injured owner as damages."

AMENDMENT No. 5 - PUBLIC HEALTH CODE

Creation of Article L. 2224-12-1

Proposed new article: "Art. L. 2224-12-1. - The provisions of Article L. 332-1-1 of the Energy Code relating to the Utility Contract Change Authorization Document apply to water distributors.

A water distributor that accepts a change of contract without presentation of the DACA is liable to a fine of 10,000 euros. Half of this fine is paid to the injured owner as damages."

AMENDMENT No. 6 - CIVIL CODE

Amendment of Article 1728

Current text: "The lessee has two main obligations: 1° To use the leased property as a careful and prudent person, and in accordance with the purpose given to it by the lease, or the purpose presumed from the circumstances in the absence of agreement; 2° To pay the rent at the agreed times."

Proposed amendment: Add a 3°: "3° Not to make any change to service contracts (electricity, gas, water, telecommunications) without the landlord’s prior written authorization. Breach of this obligation leads to automatic termination of the lease after a formal notice that has remained unheeded for eight days."

AMENDMENT No. 7 - CODE OF CIVIL ENFORCEMENT PROCEDURES

Amendment of Article L. 613-2

Current text: "Wage garnishment may only be carried out if the monthly amount of wages exceeds a threshold set by decree in the Council of State."

Proposed amendment: Add a paragraph: "By way of derogation from the first paragraph, claims for rent and rental charges unpaid for more than thirty days may be subject to wage garnishment without a minimum threshold and without prior formal notice, upon presentation by the bailiff of the lease and proof of non-payment. The bailiff’s fees are deducted automatically at the time of garnishment."

AMENDMENT No. 8 - CONSTRUCTION AND HOUSING CODE

Amendment of Article L. 173-2

Current text: "A decree in the Council of State determines [...] the conditions under which the renting of a home whose energy consumption [...] exceeds the thresholds [...] is prohibited."

Proposed amendment: Replace with: "A decree in the Council of State determines the conditions under which the renting of a home whose energy consumption exceeds the thresholds set by that decree is subject to prior written information to the tenant and to a reduction of at least fifteen percent in the local reference rent."

AMENDMENT No. 9 - URBAN PLANNING CODE

Creation of Article L. 152-6-1

Proposed new article: "Art. L. 152-6-1. - Works to improve the energy performance of existing buildings may not be refused on the grounds of non-compliance with the external appearance rules of the local land-use plan, provided they comply with the technical requirements defined by decree in the Council of State.

The following benefit from this automatic derogation: 1° External thermal insulation; 2° Sarking and roof insulation techniques; 3° The installation of renewable energy production equipment; 4° The installation of heat pump outdoor units."

AMENDMENT No. 10 - GENERAL TAX CODE

Creation of Article 199 septvicies

Proposed new article: "Art. 199 septvicies. - Taxpayers owning homes let on January 1, 2026 benefit from an accelerated twenty-year depreciation regime applicable to the acquisition value of the property, whatever the acquisition date.

The annual depreciation rate is set at: 1° 8% for the first three years; 2° 4% for the following seventeen years.

This regime is conditional on compliance with rent and tenant income ceilings set by decree."

AMENDMENT No. 11 - DECREE No. 2006-1114

Amendment of Article 3 (period of validity of diagnostics)

Current text: "The period of validity of technical diagnostics [...] is set at six years."

Proposed amendment: "The period of validity of technical diagnostics, with the exception of the asbestos, lead, electricity and gas diagnostics, which retain their specific period, is set at fifteen years."

AMENDMENT No. 12 - 2026 BUDGET LAW

New provision on energy renovation grants

Proposed additional article: "Art. XX. - The grants of the National Housing Agency are extended to the following equipment at the same level of funding as water-to-water heat pumps:

1° Air-to-air heat pumps; 2° Air-to-water heat pumps; 3° Very-high-energy-performance gas boilers when installing a heat pump is physically impossible or would degrade the energy performance of the home.

The CO2 emission factor for electricity used to calculate the energy performance diagnosis is revised to take account of nuclear power’s share in the French electricity mix."

AMENDMENT No. 13 - CONSTRUCTION AND HOUSING CODE

Creation of Article L. 312-X (State Energy Impact Loan)

Proposed new article: "Art. L. 312-X. A State Energy Impact Loan (PEIE) is established to finance the remaining cost of comprehensive energy renovation works on homes, after deduction of public grants including MaPrimeRénov' and energy savings certificates.

This loan is granted interest-free and without arrangement fees by the State, through a body designated by decree in the Council of State, to landlords or owner-occupiers whose resources do not give them access to conventional bank credit.

The eligibility conditions, the loan ceiling and the procedures for processing applications are set by decree in the Council of State."

AMENDMENT No. 14 - CONSTRUCTION AND HOUSING CODE

Creation of Article L. 312-X-1 (Repayment by landlords)

Proposed new article: "Art. L. 312-X-1. For landlords, the loan mentioned in Article L. 312-X is repaid through a compulsory deduction from the rental income of the renovated property.

The rate of this deduction is set by decree and may not exceed fifteen percent of the gross monthly rent. Repayment is suspended in the event of duly justified prolonged vacancy, but this suspension may not exceed six consecutive months.

If the property is sold before full repayment, the outstanding balance is deducted under the conditions provided for in Article 2374 of the Civil Code."

AMENDMENT No. 15 - CONSTRUCTION AND HOUSING CODE

Creation of Article L. 312-X-2 (Protection scheme for low-income households)

Proposed new article: "Art. L. 312-X-2. For owner-occupiers whose annual net taxable income is less than eighteen thousand euros, the repayment period of the State Energy Impact Loan is automatically set at two hundred and forty months.

The monthly repayment is calculated so as to be offset, as far as possible, by the theoretical energy savings resulting from the renovation works, established on the basis of the post-works energy performance diagnosis.

The income ceiling mentioned in the first paragraph is uprated each year by joint order of the minister responsible for housing and the minister responsible for the budget, in line with the consumer price index excluding tobacco."

AMENDMENT No. 16 - CIVIL CODE

Amendment of Article 2374 (Special real-property liens)

Current text: "The creditors with a lien on real property are: 1° The seller, on the property sold, for payment of the price; [...]"

Proposed amendment: Add a paragraph worded as follows: "The State has a lien on the sale price of a property for the recovery of sums still owed under the State Energy Impact Loan established by Article L. 312-X of the Construction and Housing Code.

On any transfer for consideration of the property on which the energy renovation works were carried out, the notary handling the sale is required to deduct the loan balance from the sale price, after payment of first-ranking mortgage claims, and to pay it to the Public Treasury within thirty days of the signing of the notarial deed.

Failure to comply with this obligation engages the notary’s personal liability under ordinary law."

AMENDMENT No. 17 - GENERAL TAX CODE

Creation of an article on the financing of the State Energy Impact Loan

Proposed new article: "Art. XXX. The funds needed to finance the State Energy Impact Loan established by Article L. 312-X of the Construction and Housing Code are drawn:

1° From a portion of the revenue from the Contribution to the Public Electricity Service, set annually by the budget law;

2° From the savings made by abolishing tax relief schemes for energy renovation whose ineffectiveness has been established by the Cour des comptes.

The State bears the risk of non-repayment, which is offset by the lien provided for in Article 2374 of the Civil Code. An annual report on the implementation of the scheme is submitted to Parliament before October 1 of each year."

COMPARISON WITH EUROPEAN LEGISLATION MORE FAVORABLE TO LANDLORDS

COMPARATIVE SUMMARY

France has one of the most restrictive regulatory frameworks in Europe for landlords, with direct consequences for private rental supply. This study compares the schemes of our European neighbors and identifies good practices to adopt.

I. EUROPEAN OVERVIEW: KEY INDICATORS

II. GERMANY: THE BENCHMARK MODEL

A. A regulatory framework favorable to landlords

Protection against illegal occupation:

Accelerated eviction in 3-6 months maximum

Simplified procedure before the local court (Amtsgericht)

Precautionary seizure of the defaulting tenant’s property

Ban on squatting with immediate police intervention

Recovery of unpaid rent:

Automatic wage garnishment after 30 days of arrears

No limit on attachable amounts (above the subsistence minimum)

Family solidarity: relatives can be held liable

B. Attractive taxation

Depreciation regime:

Depreciation of real estate over 50 years (2% per year)

Full deduction of expenses and works

Special 10% allowance on rental income

Specific tax advantages:

Exemption from capital gains tax after 10 years of ownership (vs 22 years in France)

Deduction of loan interest without a ceiling

Recoverable VAT on renovation works

C. Economic results

Vacancy rate: 2.8% (vs 8.1% in France)

Average time to let: 28 days (vs 65 days in France)

Gross rental yield: 4.2% (vs 3.1% in France)

Private rental share: 54% of the total stock

III. UNITED KINGDOM: FLEXIBILITY AND LIBERALISM

A. Effective eviction procedures

Section 21 Notice (no-fault eviction):

Eviction without grounds after the initial term of the lease

Only 2 months’ notice

Enforcement in 2-3 months maximum

Section 8 Notice (for-cause eviction):

Immediate eviction for arrears of more than 8 weeks

Accelerated procedure before the County Courts

Precautionary seizure of movable property

B. Freedom of contract

Rent controls:

No rent controls when reletting

Complete freedom to set the price

Free indexation during the lease

Lease terms:

Flexible leases from 6 months to 3 years

Automatic renewal unless notice is given

Assured Shorthold Tenancy: reduced tenant protection

C. Incentive-based taxation

Buy-to-let mortgages:

Specialized loans for rental investment

Preferential rates for owners of multiple properties

LTV up to 85% for experienced investors

Tax advantages:

Full deduction of expenses and interest

Accelerated depreciation of equipment

Partial exemption from capital gains tax on real estate

IV. SWITZERLAND: PRAGMATISM AND BALANCE

A. Effective protection for owners

Right of termination:

Easier termination for own use or major renovations

Short notice periods: 3 months for apartments, 6 months for houses

Rapid enforcement of court decisions (1-3 months)

Tackling unpaid rent:

Immediate seizure of bank accounts

Joint and several liability of co-tenants

Register of bad payers accessible to landlords

B. Attractive tax regime

Rental income:

Taxed as ordinary income but with flat-rate allowances

Flat-rate deduction of 20% for expenses and depreciation

Exemption from capital gains tax after 5 years of ownership

C. Administrative simplification

Energy diagnosis:

CECB (Cantonal Energy Certificate) valid for 10 years

No obligation to carry out works in order to rent

Simple information to the tenant on performance

Procedures:

One-stop shop for declarations

Full digitization of procedures

Administrative response within 30 days maximum

V. NETHERLANDS: REGULATED BALANCE

A. A dynamic free rental sector

Market segmentation:

Social housing: capped rents (< €763/month)

Free sector: no controls for rents > €763/month

Protection differentiated by segment

Eviction procedures:

Rapid eviction for unpaid rent (2-4 months)

Mandatory but time-limited mediation

Effective enforcement of decisions

B. Neutral taxation

Rental income:

Taxation on a progressive scale with actual deductions

Depreciation of buildings over 25 years

Full deduction of expenses and interest

VI. BELGIUM: EFFECTIVE DECENTRALIZATION

A. Regional powers

Flanders:

3-year lease renewable by tacit renewal

Easier termination by the landlord

Rental deposit capped at 2 months’ rent

Wallonia:

Eviction procedures in 3-6 months

Mandatory but rapid mediation

Automatic rent indexation

B. Attractive regional taxation

Rental income:

Taxation separate from other income (optional)

Flat-rate allowance of 40% in Flanders

Economic impact study, methodology and sources

To assess the economic impact of the proposals aimed at reviving private rental investment, this study relies on official data, cautious assumptions and explicit calculation methods. The aim is to quantify the potential effects on rental supply, investment, employment and growth, based on realistic scenarios.

1. Baseline data used

a. Number of homes rated F and G

According to ADEME, on January 1, 2025, around 1.6 million homes in the private rental stock were rated F or G, including 660,000 homes rated G (considered indecent within the meaning of the Climate and Resilience Act) and 940,000 homes rated F (1,600,000 − 660,000 = 940,000).

Source: ADEME, Number of homes in the rental stock potentially considered indecent because of their DPE label, updated April 7, 2025.
Link: https://batizoom.ademe.fr/indicateurs/nombre-de-logements-du-parc-locatif-potentiellement-consideres-comme-indecents-du-fait-de-leur-etiquette-dpe

b. Rental demand

According to the Union sociale pour l’habitat, 2.8 million households are waiting for social housing in 2025.
Source: USH, Key figures for social housing, 2025 national edition.
Link: https://www.union-habitat.org/centre-de-ressources/economie-financement/chiffres-cles-du-logement-social-edition-nationale-2025

c. New housing starts

In July 2025, only 27,500 homes were started, a 14% drop compared with the pre-Covid average.
Source: Ministry of Ecological Transition, Housing construction, results to end of July 2025.
Link: https://www.statistiques.developpement-durable.gouv.fr/construction-de-logements-resultats-fin-juillet-2025-france-entiere

2. Calculation assumptions

a. Return of F- and G-rated homes to the market

Assumption: allowing F- and G-rated homes to be rented under contractual conditions would bring back to the market 60% of the homes currently withdrawn, i.e.:

60% × 660,000 G-rated homes = 396,000 homes

60% × 940,000 F-rated homes = 564,000 homes

➡️Total potentially returned to the market: 960,000 homes

This assumption is based on landlords’ intentions as recorded by ANIL and on the vacancy rates observed by INSEE.
ANIL source: Landlords’ barometer, 2024
INSEE source: Insee Première No. 1979, 1.2 million additional vacant homes in France since 1990, published January 16, 2024.
Link: https://www.insee.fr/fr/statistiques/7727384

3. Impact on rental investment

a. Recovery assumption

Suppose that 20% of the landlords concerned reinvest in works or new properties, with an average ticket of €35,000 per home (energy renovation or rental purchase).

20% × 960,000 homes = 192,000 homes concerned

192,000 × €35,000 = €6.72 billion of investment

4. Effects on employment

According to the Fédération Française du Bâtiment, each €1 million invested generates 8 to 10 direct and indirect jobs.

€6.72bn ÷ €1m = 6,720 tranches

6,720 × 9 (average) = 60,480 jobs created or supported

Source: FFB, Construction in figures, 2025 edition
Link: https://www.ffbatiment.fr/le-batiment-en-chiffres

5. Effect on GDP

The average fiscal multiplier for housing investment is estimated at 1.4 by the Directorate General of the Treasury.

€6.72bn × 1.4 = €9.41 billion of GDP generated

That is about +0.35 GDP points (France’s 2024 GDP: €2,700bn)

Source: DG Trésor, Fiscal multipliers in France, March 2022
Link: https://www.tresor.economie.gouv.fr/Articles/2022/03/15/les-multiplicateurs-budgetaires-en-france

6. Cross scenarios

The following three scenarios apply a realistic activation rate to the 1.6 million F- and G-rated homes potentially concerned, reflecting the practical constraints on returning them to the market (owner’s decision, renovation times, local situation).

The central scenario, adopted as the working assumption, is based on an activation rate of 31% of the F- and G-rated homes currently withdrawn from the rental market, close to the intentions declared by landlords in the 2024 ANIL Barometer.

Detailed methodology of the economic calculations

I. Increase in rental supply

Central assumption: the proposed reforms would bring between 450,000 and 600,000 homes back to the market by 2030, an increase of 15 to 20% in private rental supply.

Calculation method:

Private rental stock in 2025: 6.2 million homes (source: INSEE, 2024 Housing Survey)

15% to 20% of this stock = 930,000 to 1,240,000 homes

Cautious assumption: only 50% of the unlocked homes are actually returned to the market → 450,000 to 620,000 homes

Justification:

Cross-checking with ADEME data on F- and G-rated homes (1.6 million concerned)

2024 ANIL survey: 42% of landlords say they want to sell or withdraw their property if the regulatory constraints persist

ADEME source: https://batizoom.ademe.fr

II. Impact on GDP

Assumption: each euro invested in housing generates €1.40 of GDP, according to the Treasury’s average fiscal multiplier.

Calculation method:

Investment generated by the reforms: €6.5 to 7.2bn/year

Multiplier: 1.4

Annual impact on GDP: +0.30 points (basis: France’s 2024 GDP of €2,700bn)

Sources:

DG Trésor, Fiscal multipliers in France, March 2022
https://www.tresor.economie.gouv.fr/Articles/2022/03/15/les-multiplicateurs-budgetaires-en-france

III. Jobs created in construction

Assumption: each €1 million invested in energy renovation creates 8 to 10 jobs (direct and indirect).

Calculation method:

Additional investment: €2.8bn/year

Average ratio: 9 jobs / € million

Jobs created: 2,800 × 9 = 25,200 FTEs/year

Source:

Fédération Française du Bâtiment, Construction in figures, 2025 edition
https://www.ffbatiment.fr/le-batiment-en-chiffres

IV. Reduction in the costs of unpaid rent and squats

Calculation method:

Number of squatting cases: 57,000/year (source: Ministry of the Interior, 2024)

Average cost per procedure: €15,000

Potential gain with accelerated eviction: 57,000 × €15,000 = €855m/year

Amount of unpaid rent: €5.4bn/year (source: CAF, 2024)

Current recovery rate: 67%

Projected rate with the reform: 89%

Gain: (89% − 67%) × €5.4bn = €1.188bn/year

V. Costs avoided on DPE renovations

Calculation method:

Number of F- and G-rated homes kept on the market: 380,000

Average cost of energy renovation (G → D): €32,000

Savings: 380,000 × €32,000 = €12.16bn

Source:

ADEME, Average costs of energy renovation by DPE class, 2025
https://www.ademe.fr

VI. Cost-benefit analysis for public finances

Estimated costs:

Extension of MaPrimeRénov’: €450m/year

Tax revenue foregone (income tax, social levies, property tax): €280m/year

Total: €730m/year

Estimated benefits:

Reduction in APL housing benefit: €420m/year

Reduction in social housing spending: €800m/year

Savings on emergency accommodation: €150m/year

VAT on works: €560m/year

Income tax / corporate tax from construction: €180m/year

Social contributions: €320m/year

Property transfer taxes: €290m/year

Total: €2.72bn/year

➡️ Net balance: +€1.99bn/year
➡️ Benefit/cost ratio: 3.7

Conclusion

This study shows that targeted and pragmatic measures can have a significant macroeconomic impact while responding to a social emergency. By making private landlord status more attractive, we unlock a massive rental supply, stimulate investment and create thousands of jobs across the country.