Renovating the energy condition of rental property: a problem for the over 60s?

In France, the situation on the rental housing market is tense, especially in major cities. However, the European Union's goal of reducing emissions (to 55% of greenhouse gas emissions by 2030) is exacerbating these tensions. What consequences await the owners on whom these incomes rely, especially after the age of 60?

What if a property can no longer be rented out? From January 2023, housing (except tourist furnished properties) in the French trucking industry cannot be rented out if its energy consumption exceeds the threshold of 449 kilowatt hours of final energy per 1 square meter of living space. If your property is rated G, it cannot be rented out. If the grade is F, the lease will be''blocked, and letting will be prohibited from 2025. As a reminder, according to a study by the National Agency for Energy Restructuring, the number of F and G class dwellings in France is around 7.2 million, representing 20% of the entire market that will not be available for rent by 2025!

Many French people have invested in rental properties for extra income after they retire and build their own property: these almost "retrospective" regulations put them at risk. If the energy efficiency document is bad and the dwelling is rated F, G''and soon E, owners risk a significant depression in property prices and a substantial loss of income. There are only two options: sell the property (with a large loss of expected income) or consider renovation.

Monetization of real estate: reverse mortgages. Despite financial assistance for energy efficiency renovations, the costs left to the owner's responsibility remain high. It's not always easy to face unexpected expenses, especially in retirement when available income drops. In addition, banks hardly lend to people over 65 and the cost of insuring the loan, if such an option is available, becomes problematic. In this context, monetization of real estate is already widely developed at