Real estate: the reinforced "affordable rent" device, Wargon announces

Batirama.com 15/11/20210

To encourage owners of vacant homes to rent their property, the Minister for Housing, Ms. Wargon, wants to "simplify" and strengthen the "affordable rent" system.

“Either you rent at the market price, or you decide to rent below the market price and, there, it is good if there is an aid which compensates for this effort”, explained the minister.

Clearly, the owner would have "a tax reduction" which would be 15% if he agrees to rent 15% below market prices, and 35% if he rents 30% below market prices, which can represent a gain that the minister estimates "between half a month and two months' net rent".

The "affordable rent" system, launched in February 2017 by Emmanuelle Cosse, the former Minister of Housing, already allows owners to benefit from a tax exemption when they rent below market price, but the current minister considers this device too complex and wants to "simplify and improve it". "Before, the rent was based on zones. There, it's much simpler, you take market rents" in the housing municipality.

1.1 million vacant homes according to the ministry

The 2017 version provided for a minimum deduction of 30% of the amount of rent collected in tight areas, which represented 2,274 municipalities divided into three zones: 77 in zone A bis (Paris and inner suburbs), 650 in zone A ( outer suburbs of Paris, Côte-d'Azur, Aix-Marseille, Montpellier, Lille, Lyon) and 1,547 in zone B1 (other urban areas).

The last zone, B2, has 3,900 other "tense" municipalities, where owners can deduct at least 15% of their rental income. That is to say areas in high demand, said the ministry.Several announcements from the Minister are expected in the context of the housing component of the 2022 Finance Bill.

Source: batirama.com