France's government not favorable to generalizing rent controls

The French government has signaled its opposition to expanding rent controls nationwide, citing concerns about the policy's effectiveness and implementation. Housing Minister Vincent Jeanbrun stated that the government is "not favorable" to generalizing the rent control system, whose experimental phase is set to conclude in November.

This stance follows the release of a government-commissioned report that described the effects of rent controls as "ambivalent." The report highlighted that while the system, in place in cities like Paris, Lyon, and Lille, helps moderate rents, it is "imperfectly targeted." Its effectiveness is also hampered by fragmented institutional oversight and a "deficient statistical apparatus," according to the report's co-author, Guillaume Chapelle. He noted that public statistics are insufficient for managing these policies, which the state currently cannot control.

The report also observed a decrease in rental listings in cities with rent controls, but it did not establish a causal link to the policy or confirm a reduction in signed leases. International studies in other cities have suggested that rent caps can lead to a decrease in rental supply.

Despite the government's reservations, there is urgency to legislate as rent controls could disappear in six months if no new text is published. Jacques Baudrier, Paris's deputy mayor for housing, expressed concern over this potential lapse. A petition calling to "save rent control," launched by the Foundation for the Housing of the Disadvantaged, has gathered nearly 34,500 signatures.

Minister Jeanbrun also reiterated his intention to allow local authorities that wish to manage the "MaPrimeRénov'" renovation aid program, through the "Relance logement" bill.