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should rental prices be regulated?


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should rental prices be regulated?

A.Peyrout, J.Nény, J.Ababsa, E.Jarlot – France 2

France Televisions

Saturday, May 14, while the benchmark rent index increased, housing remains one of the most important expenses for the French. How to better regulate prices?

In France, housing remains the main household expense on Saturday May 14. For tenants, it represents 30% to 50% of their budget. “It represents my entire budget, because I am a student, so I have no income”, indicates a woman. According to INSEE, the reference rent index has increased by 2.48% in one year, which has not happened since 2008. This figure is used to calculate rents.

Some cities have set up rent controls, such as Lille (Nord), Paris and Lyon (Rhône). Bordeaux (Gironde) and Montpellier (Hérault) will soon do the same. “With the Covid crisis, with the crisis in Ukraine (…) all of this is no longer bearable for tenants”explains Eddie Jacquemart, president of the National Housing Confederation, who asks for blocked prices. “The answer will be global, in this purchasing power law”, assures Emmanuelle Wargon, minister delegate in charge of housing. This should be presented at the beginning of June.

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