Response of rents: 60% of owners would change their projects if it was generalized

How would the private landlords react if this device ended up being generalized to the whole territory?Locservice's investigation.Fr…

The supervision of rents, an experimental measure born from the 2018 Elan law and initially planned for five years, is about to be extended by three years via the "3DS" bill.The goal ?Give time to more municipalities to test this device in order to moderate the rent increases on their territory.

Still in the state of experimentation, the supervision of rents currently applied in certain voluntary municipalities including Paris, Lille or Lyon, however has arouses questions since its inception among professionals and owners.The Locservice platform.fr therefore sought to know how to react private donors if this device ended up being generalized to the whole territory.

Difficult times for the rental offer in France

The health crisis did not help anything in the state of the real estate offer in France.In recent times, negative signals have multiplied: decrease in the number of housing for sale, fear of housing crisis by HLM organizations, multiplication of unprecedented tension situations in the provinces, delays on new housing sites after confinements,Down lower mobility, ... Many cities find themselves in shortage of housing, on purchase as well as for rental, which inevitably pulls rents up as the last Locservice 2022 observatory notes.The mere fact that new cities (Bordeaux and Montpellier in this case) wanted to adopt the supervision of rents in 2022 is also in itself an index that the situation is deteriorating.

In parallel, tourist rental finds colors: if we have seen a rocking of “airbnb” goods to the classic rental market during the various confinements, which temporarily relieved the rental offer in large cities, the markettends to return to normal or even exceed the pre-crisis levels.We can therefore no longer count on this parameter to hope to house the candidates looking for a long -term rental.This could even get worse if the "Airbnb" rentals are not better regulated.In this context of lack of offers, the management of rents could even become an additional handicap as evidenced by the exclusive survey carried out by Locservice.fr to more than 700 landlords landlords.

The risk of leakage of investors and owners

If 2021 was a happy new year for rental investment, the future seems to say the contrary to say the least uncertain.With the tightening of credit conditions on January 1, 2022, the files are less likely to be accepted, which can on the one hand penalize investors and therefore reduce rental offer, and on the other hand to force candidates toThe primary primo-access.

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Burning subject, future restrictions on energy performance also have a good chance of dissuading certain investors.With the upcoming ban on renting classified G, then F then E in their DPE, acquiring accommodation for rental will undoubtedly become more and more difficult, and many owners will have trouble carrying out the necessary work.Result, a risk of disinterest in rental investment thanks to other more interesting investments, and a risk of resale of certain accommodation to get them out of the rental.

Finally, purchase prices being increasing, also arises the question of the profitability of investment.In cities where rents are supervised, if the increase in the purchase price cannot sufficiently be postponed to the requested rent, too low profitability could block certain rental investment projects, or redirect them to the rental sectorseasonal.The survey figures presented below illustrate these eventualities very well.In addition, with the 3DS bill, it is expected that the power of sanction will be transferred to the town halls, which should facilitate control and prosecution towards the owners who would not respect the supervision of rents.

How would the owners react to an extension of the rent supervision?

As we can see, the situation seems fragile on the side of the owners.In an attempt to better perceive the state of mind of the latter, the Locservice site.fr, a rental platform between individuals, organized a survey among the subscribers to its newsletter reserved for owners, and to which 718 replied.To the question "more and more cities adopt the supervision of rents.How would you react if it was generalized?", The majority of respondents replied having intended to change their plans in this hypothesis: reselling their goods (30 %), abandoning their investment project (18 %), or reorienting themselves towards tourism rental (11 %), or almost 60 % in total.

A tender shock, the only real solution to regulate rents

As can be seen in the Locservice 2022 observatory, Paris is roughly the only big French city where rents per square meter decreased between 2020 and 2021.Lyon and Lille, also subject to the management of rents, saw their average rent increase in the order of +1.5 % and +4 % respectively.We therefore understand that there are other factors at stake: as regards Paris, it should be noted a clear decrease in rental tension (ratio between number of requests and number of dwellings): from 5.61 in 2019, itcollapsed at 1.71 in 2021 due to the exodus linked to the health crisis.On the contrary, Lille has seen its level of tension increase, and Lyon remained at an equivalent level.It therefore seems that the real subject is the rental tension rather than the presence or not of a framework of rents.

We can reasonably deduce that a generalization of the supervision of rents in France risks leading to notable counterproductive effects on the rental offer and, paradoxically, it is the tenants who will be the first penalized.

Richard Horbette, the founder of Locservice.FR, concludes: "If the rent frames seem to relieve symptoms for a time, it should not be forgotten that it is at the root of the problem that we must attack: the volume of offer available.It is therefore important to send the right signals to not only build in truly tense areas, but also maintain the confidence of private investors who hold almost a quarter of the housing park in France (INSEE).Our survey clearly shows the disastrous influence that could have a generalization of rent supervision.In addition, it is essential to curb the development of tourist rentals in the centers of medium and large cities, which mechanically increase the rents of long -term rentals by rarefaction effect.Finally, we must not neglect the effect of decentralization on the rebalancing of prices between cities: we see it very well at the moment with the phenomenon of the many Ile-de-France residents who have left to settle in the region following the COVVI-19.»»