It is a blow to rent control in Paris, which sets maximum rents in order to contain rising rents. A ruling by the Administrative Court on July 8 partially revoked rent control in Paris. However, this cancellation does not relate to all leases but only those signed between July 1, 2019 and June 30, 2020.
No analysis after 2017
The National Union of Landlords, UNPI, requested the repeal of the decree of May 23, 2019 setting reference rents in Paris, for non-compliance with Article 140 of the Ilan Law by citing an insufficient study of the structure. From the rental market in Paris. The Administrative Court agreed with him to cancel the 2019 decree on the basis of documents submitted by the governor It does not include an analysis of the structure of the rental market in the Paris municipal territory after 2017, which makes it possible to identify housing classes and geographical segments with sufficient accuracy to determine the reference rent there.“.
The second point made by the Paris Administrative Court: The report of the local observatory of the rents of the Parisian agglomeration OLAP, on the development of residential rents for the private rental sector of the Parisian agglomeration in 2018, was published in July 2019, any date after the decree of May 23, 2019.It does not appear from the documents in the file that OLAP observed the structure of the Paris rental market before the governor issued the contested order. Thus, the argument based on a procedural defect must be supported., confirms the administrative court. “So the decree was based on data that did not exist, which is puzzling“,” notes Alan Cohen Boulakia, associate attorney at SVA Avocats, which advocates for UNPI.
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The head of UNPI, Christoph Demmerson, responds to this court decision:This decision is good news. It supports the fight we’ve been leading for several years and highlights the legal violations that have been put in place.This ruling has practical consequences for Alan Cohen Boulakia: “All landlords who have signed a lease, between July 1, 2019 and June 30, 2020, at an unspecified rate, and who have not adhered to the regulations are acquitted.“, Confirms.
So it’s a victory for UNPI but”It is not a revolution, because it is not the decree itself that was repealed but the decree of 2019. The decree of 2020 and 2021 has not been repealed.“, Nuance Professor Roman Rossi Landi, attorney in real estate law. It remains to be seen whether UNPI will appeal the 2020 and 2021 decisions and whether the state will appeal for this for the year 2019. Case to follow.
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