The real estate crisis: is government action enough to tackle the social housing bomb?

Nowadays, it is increasingly difficult to find a home due to inflation, difficulty in obtaining credit and the cancelation of some events. Professionals in the industry, as well as some politicians, don't seem optimistic about the future.

Former Prime Minister Edouard Philippe

Speaking at a MoDem political meeting on Saturday, September 30 and Sunday, October 1, he spoke at length about the "social" and "urban bomb" that housing represents.

Professionals in the industry are issuing warnings. During the HLM Congress, they will be sure to address the government on Tuesday. Housing crisis: 'We need mass production of social housing', outrages spokesman for Right to Housing Association.

Finding housing is becoming all''more complicated. The reasons are well known. We have long had a housing shortage in France because of a lack of land to build on. With inflation, raw material prices have soared and the construction industry has suffered even more. Not to mention the problem of rising interest rates in recent months and the reluctance of banks to lend. None of this is conducive to property acquisition..... quite the opposite. Real estate investment is becoming less attractive.

This is especially true for owners looking to rent. In 20 major cities there are restrictions on rent levels, making regulation more stringent. In a few years' time, for example, it will be impossible to rent out properties with low energy efficiency ratings.

In the opinion of professionals, the executive does not realize the impending disaster. Proof of this was the presentation of the budget last week, which sparked fierce protests. Among other things, the government plans to cut the zero interest rate soft loan program, which is only available for certain properties. Another measure is the abolition of the Pinel program, which was originally aimed at encouraging the purchase of real estate by providing tax rebates''to the buyer. However, the Court of Accounts often considers it inefficient and too expensive. It will be removed from the 2024 budget.

According to the building federation, it will reduce the number of construction by around 30,000 properties a year. As for the idea of relaxing the timetable for the ban on leasing out energy unadvanced properties? Economy Minister Bruno Le Maire proposed the idea but then abandoned it. In general, the issue of housing has become a point of confrontation.