Sunday, July 3, 2016

Rent control: a “devastating decision” for professionals – The Point

Emmanuelle Cosse announced the extension of the rent control last Thursday. But the decision of the Minister of Housing angered real estate professionals. This Sunday, the National Federation of Real Estate (FNAIM), the Union real estate syndicates and Plurience Association criticized the fact that the measure will be extended to the Paris area in 2018 and requested that it is confined to central Paris. “This decision is contrary to the guidelines issued by the Prime Minister, Manuel Valls, to circumscribe the regulation of rents in central Paris, and to take stock before pursuing a possible extension,” they wrote in a statement .

“Before taking any unilateral decision such as the one just taken abruptly, we ask that the decision of the Prime Minister is respected and is the subject of a parliamentary fact-finding mission taking stock of the measures applied to central Paris before any extension, “they continue.

Proposals alternatives

they further have” repeatedly pointed out the devastating consequences of this decision technocratic that ignores market and breaks investor confidence “and recalled having” made alternative proposals which have never been examined, since they involve contracting and not to coaching. ” The Minister of Housing, Emmanuelle Cosse, said Thursday it has signed the decree to extend rent control to 412 municipalities in the Paris area.

Since August 2015, the signing of a new lease or upon renewal, the rent for a unit can not exceed more than 20% a reference rent (modulated areas and number of rooms) set by prefectural neither he be 30% lower. A “complement” is allowed for certain goods.

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