France

Rent prices in Paris soar in six months since rent caps binned

These are the findings of Frances National Association for Consumer and User Protection (CLCV), who warn that the number of rents in compliance with their rates has also dropped by 13 percent in the last six months.

Theyve based their findings on over 1,000 real estate listings in the capital.

In 2017 before rent caps were scrapped, four rental prices out of ten exceeded the CLCV s compliant rate.

"Property owners have become overconfident, " Jean-Yves Mano, president of the CLCV, told France Info.

“Weve seen a significant average price increase of €1,530 per year and in some extreme cases in the 20th arrondissement more than €450 per month, which amounts to nearly €5,400 per year.”

Small flats and furnished properties have seen the biggest price hike.

“60 percent of small dwellings have rents above what should be the law.

“Paris residents who rent a furnished home are slapped with higher prices than those who dont.”

SEE ALSO: What does scrapping rent controls in Paris mean for tenants?

According to the consumer protection body, more and more middle-class Parisians are being priced out of the city, namely students, single people and anyone in financial difficulties.

Properties rented through real estate agencies were 77 percent compliant with the rent cap in place. That figure is now down by 20 percent.

Nor does it seem that feasible to find a good deal by dealing directly with a Parisian landlord as less that 40 percent of privately rented out properties offer a compliant price.

Property search engines such as Le Bon Coin or Particulier à particulier also offer only 40 percent decent rental prices.

FOR MEMBERS: Rent prices in France – What can you get for your money in each city?

New legislation known as the Elan law is to be debated soon in the French Senate, with the aim of implementing the "evolution of housing, development and digital technogy" in Paris.

"Unfortunately, the Elan law allows there to always be a five-year experimental period before normalising the rental market,” argued Jean-Yves Mano, president of the CLCV.

“Whats going to happen during those five years? Rents will increase, once theyve increased, itll be time to fix or control them. Its all a little absurd."

"We are asking for the application of rent control for all affected areas. Its urgent to return to this system"

Back in November 2017, The French government and the mayor of Paris were left stunned by a Paris administrative courts decision to cancel landmark rent controls implemented in the French capital back in August 2015.

The judges ruling effectively scrapped the regulation that banned landlords from setting rent prices more than 20 percent higher than the designated reference price for the neighbourhood when renting a flat for the first time or renewing a lease.

Paris City Hall feared it would lead rent prices – already high at the time – to soar as a result.

Those predictions seem to be coming true as Paris residents are forced to dig even deeper into their pockets to keep living in the capital.

Original Article

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