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End of Pinel, zero-rate loan ... What the government's plan contains to deal with the housing crisis

There is “no magic measure, one and only, that would unblock the situation.

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End of Pinel, zero-rate loan ... What the government's plan contains to deal with the housing crisis

There is “no magic measure, one and only, that would unblock the situation. The State will take its part, we will be a facilitator”, warns Élisabeth Borne, the Prime Minister, who presented this Monday afternoon the government's measures to support the housing sector. The executive has heard the multiple alerts launched in recent months by professionals in the sector. If they were expecting a strong measure, capable of quickly restarting new construction, which largely conditions the health of the entire sector, they risk being disappointed. The government considers that the crisis is essentially cyclical. And that measures must be taken "while the rates are rebalanced", according to Matignon. To achieve this, action has been launched at all levels: access to property, the rental market, the revival of new construction and social housing. Le Figaro reveals the main measures of this plan.

For the first point, the zero rate loan (PTZ) will be extended until 2027. “Our first objective is to provide access to housing for all French people. This is why we are going to take measures to guarantee access to home loans, in particular by relaxing certain rules and by extending and transforming the zero-rate loan, ”explains the Prime Minister. Similarly, the granting conditions should be relaxed, in discussion with the banking authorities. This new PTZ will be refocused and will henceforth be dedicated to the acquisition of new housing in a tight area (only for collective housing and no longer for pavilions) or for the acquisition of housing former in a relaxed zone subject to carrying out renovation work.

The joint real lease, which dissociates land from real estate, should be extended. This device allows access to property at prices 30 to 50% lower than on the market. A trust pact should be negotiated with social housing actors, who will obtain more financial means. The resource ceilings will be revised upwards to allow more households to be eligible for this system. For the very short term, CDC Habitat and Action Logement will be called upon to buy 50,000 housing units from developers (17,000 for the first and 30,000 for the second).

In return, the Pinel, this tax system supporting private investors buying a property to rent it, will not be extended. This is a major change in the housing landscape in France, which may not be appreciated by professionals.

For several months, they have not stopped sounding the alarm about the coming crisis. Last November, the government convened a National Refoundation Council (CNR) devoted to housing. The fears then focused on the structural problems of the sector, in particular the difficulty in obtaining building permits and the continuous rise in prices over a very long period. Except that soaring interest rates have plunged housing into a cyclical crisis since then. Initially scheduled for May 9, the conclusions of the CNR Logement, and the government's measures, were finally postponed by almost a month. Time for the government to review its copy. And to really take the measure of a crisis which could become a real “social bomb”, as more and more housing specialists are repeating. This crisis manifests itself in many ways. Overview.

The situation is problematic both in new construction and in the rental market. On the first level, the Federation of Real Estate Developers (FPI) has published very worrying figures for the start of the year. In the first three months, sales of multifamily homes have collapsed by 34% compared to the same period of the previous year. And the fall reached 46% compared to the first quarter of 2019. Buyers-residents are in very sharp decline (-31%), but it is even worse for investors (-52%). This collapse of the new home market inevitably has its consequences on the activity of construction professionals. The French Building Federation (FFB) estimates that 100,000 jobs are at risk within 18 to 24 months.

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