Limitation of rent increases: the National Assembly adopts the text in an emergency situation

In a turbulent atmosphere, the National Assembly approved the extension of a device that limits rent increases to 3.5% for households and small and medium-sized businesses, with the left accusing the majority of opening the door to increases rather than “freeze” rents.

“I am fully aware that this text will be reviewed within a limited and unusual timeframe”, Renaissance speaker Thomas Cazenave admitted at the opening of the debate on Wednesday evening, May 31, on his text, which was signed by groups of the presidential camp (Renaissance, MoDem, Horizons). It is proposed to be renewed by the beginning of 2024 “Rent Shield” : 3.5% marginal increase in benchmark rent index. Launched in the summer of 2022, it should be completed by the end of June. A similar device limits the growth of the commercial rent index for SMEs.

With the end of the shield looming, with high inflation, the extension proposal had to be registered urgently to hopefully complete the parliamentary shuttle in time. The government also started an expedited procedure (with one hearing before each chamber).

MPs from the Freedom, Independent, Overseas and Territories (LIOT), Les Républicains (LR) and National Rally (RN) groups condemned some of the text’s limitations but voted for it. Passed overnight by a vote of 259 to 93, after a tense session marked by interpellations and points of order, it will now move to the Senate.

“The lease cannot be frozen”

Thomas Cazenave defended “emergency” To continue this “protects”, under penalty of rent-seeing “It will increase by more than 6% from July”. Left MPs answered him that it was necessary “freeze” and voted for the text.

“The illusion of this shield will surely lead to ascension”Environmentalist Kiriel Chatelain was worried. “It will be contained [mais] Any increase would risk pushing even more people into poverty.she argued.

“Tenants have already experienced a 3.5% increase.” [en 2022-2023] And your device will understand the new growth. (…) The only answer to altitude is freezing.”Communist Stephen Pew was abundant. “We ask for a gap year”insisted William Martine (La France insoumise).

“The lease cannot be frozen”replied Mr. Cazenave, who supported him“Balance” between “tenants” and “Owners also affect inflation”. He also warned of censure by the Constitutional Council if the rent freeze or the shield were extended too widely. An argument rejected by the left that freezes past rents does not cause this problem. “Tough extension [du dispositif] will not cause constitutional risks”The trade minister’s delegate, Olivia Gregoire, insisted.