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Money Matters and Legal / In Law

Appeal to Annul Paris Rent Caps Rejected by the State Council

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A union of property associations had their case against the Paris rent caps heard on Wednesday. As expected, their appeal was rejected and the rent caps remain the means by which Paris halts spiralling rents. 

The result did not come as a surprise, considering the speaker of the National Assembly for finance recommended the appeals be rejected in his address on November 16. Nonetheless, their cases were heard on Wednesday 9 December and, to the delight of renters and the chagrin of landlords, the rent caps were upheld and will continue to limit how much property owners can charge to tenants.

Petitions were brought by the following assocations:

  • FNAIM – the federation of professional property bodies in France
  • CDHP – the national chamber of landlords
  • SNPI – the largest union of property professionals
  • UNIS – the union of property unions

The first case asserted that the cases had to be heard by National Council for Property Transactions and Management. The Council proceeded to reject this request as the rent caps only affect a certain type of landlord, those renting out property in Paris, and are therefore too limited in scope to be heard by the National Council.

The second argued that the rent caps are anti-market and restrict activity to the detriment of both buyers and sellers. The Conseil d’Etat in retort highlighted that the precise nature of the way the rent caps are imposed meant this was untrue. Median levels are set according to market data – provided by real estate agencies – of what the average rents are in each arrondissement.

They also take into account whether the property is furnished or not, as well as the age of the building and number of rooms. On top of this, permission to charge above the rent cap can be obtained if the property has particular qualities, say a location or view, that put it above other comparable properties.

The third complained that the imposition of the rent caps is unfair, impeding on the principle of equality before the law as it targets a specific group. However, the procedure highlighted above negates this argument, according to the State Council. The Paris rent caps will continue to set median levels in each arrondissement, at least as long as the current government is in power. Numerous presidential candidates have promised their removal.

image © Wikicommons

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