As the CNR (National Council for Housing Revitalization) prepares to release its conclusions in a few days on reigniting the housing sector, the think tank group Vivere, initiated by Ikory and presided over by Bernard Michel, has taken the initiative to submit ten proposals to the Ministry of Urban Affairs and Housing. These proposals serve as a contribution to addressing the challenge of affordable housing scarcity in France. Their aim is to enhance the financial appeal of intermediate rental residential properties in high-demand areas and encourage institutional entities and individuals to reengage in investments within this asset class.
Indeed, the resurgence of interest rates has posed a threat to real estate financing models. The governmental authorities need to address the challenges of transitioning toward sovereign and decarbonized energy production methods in terms of infrastructure and urban policies.
The tightening of environmental constraints and the need for urban densification, coupled with emerging fundamental trends such as urbanization, demographic shifts, and evolving work patterns, further complicate the issue at hand. This calls for the exploration of novel solutions, with a medium- to long-term perspective on providing affordable housing.
- Promoting Private Landlord Investment and Facilitating Energy Transition
Introducing a Private Landlord Status for Individual Investors in Both New and Existing Properties, Offering Equivalent Benefits as Institutional Investors for Intermediate Rental Housing :
- Provide private investors with an amortization system based on accounting principles.
- Exclude from the IFI (Solidarity Wealth Tax) calculation properties owned for more than 10 years or at the end of the capped rent period under tax incentivized schemes (SCELLIER or PINEL), when these properties are leased at intermediate rent levels.
- For new property acquisitions, eliminate tax reduction mechanisms and grant individual investors or SCPI (Real Estate Investment Trust) unit holders a 10% VAT rate if they commit to renting at intermediate housing conditions for a minimum of 15 years.
- Encourage the re-entry or initial entry of low-energy performance properties (DPE: E, F, and G) into the rental market after renovation. Allow landlords to adjust rent prices :
Enable rent de-restriction (set at market value upon lease renewal) for properties that have undergone a DPE requalification to A, B, or C following improvement works. This aligns with the goals of decarbonization and existing property refurbishment.
These measures, outlined by the National Council for Housing Revitalization, aim to stimulate private investor involvement while aiding the transition towards sustainable energy practices.
Download the press release here: [Reviving Rental Housing Growth The Ten Proposals by Vivere, a Housing Think Tank Initiated by Ikory]