Rent control partially suspended in Paris

The decision fell on July 8. Rent control has been partially suspended in Paris by the administrative court, according to a press release from the National Union of Property Owners (UNPI), which requested it. The decision relates only to lease contracts signed between July 1, 2019 and June 30, 2020.

Parisian landlords who did not respect the rent limit during this period can breathe: they no longer risk prosecution. And those who framed rents when, for once, they could not, in theory could take legal action.

‘The framework is beginning to bear fruit’

This partial cancellation satisfies UNPI. “This decision is good news. It supports the fight we have been leading for several years and highlights the legal abuses that have been put in place,” comments Christoph Demmerson, its president, in this press release.

But for Ian Brusatte, the housing assistant at the Town Hall in Paris, I called him 20 minutesThis decision will have few consequences. “The prefectural ordinances for 2020 and 2021 have been approved. Fortunately, because the oversight is starting to pay off. It will even be reinforced in the fall because the city will regain the power of control and sanctions.” The Paris city council proposed in March that the city conduct the checks itself rather than at the police headquarters. The state has since given the green light, as Ian Brusatte asserts.

Rent control has been largely circumvented

“This does not change the situation, the regulatory framework is not in question and I am not sure there are disagreements, because the procedure seems to me completely random,” assures Professor Roman Rossi-Landy, an attorney specializing in real estate. The decision comes from a simple procedural matter, and does not call into question rent control on merit. In particular, the court considered that the documents submitted by the governor during the relevant period were insufficient. Furthermore, the OLAP report [Observatoire des loyers de l’agglomération parisienne] On the development of residential rents in 2018 in the private rental sector in the Paris region, was published in July 2019, i.e. after the date of the contested decision”, the Administrative Court wrote in the decision that 20 minutes have bought. Clearly: the state did not have sufficiently reliable information to determine the reference rent, which is the reference rent necessary to determine the lease framework.

Rent control is far from respectful everywhere in Paris. “Nearly half of the ads do not meet the applicable limits,” or 47% of dwellings, according to a study by agents website Meilleurs, which was released this Tuesday, July 12 and covers 18,000 ads published by real estate agencies in Paris, between July 1, 2020 and July 1, 2022. The site adds a trend “almost stable since 2021”, which specifies that “furnished apartments are the first to be affected”: 54% of ads exceed the applicable limits, with an additional average monthly cost of 243 euros. Small surfaces of less than 20 square meters are affected by 61% of illegal advertisements.

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