MPs in France have rejected a bill to relax the rules on renting properties with poor energy efficiency ratings, meaning that landlords will now have to follow the existing law, regardless of circumstances.
The Assemblée nationale rejected the bill on Wednesday, January 29 (72 against, 65 for). The draft law was a cross-party bill (proposition de loi, PPL) that would have relaxed the ban on letting properties with a DPE rating of G, in some specific circumstances.
What is a DPE rating of G?
A DPE rating of G is the lowest of the seven levels (A is the best).
A G rating means that the property is very energy inefficient and consumes more than 420 kilowatt hours of energy per square metre per year. These properties are often described as passoires thermiques (meaning they let heat out ‘like a sieve’).
All properties being sold or rented out on a new contract need to have new DPE checks (diagnostic de performance énergétique) carried out as of this year.
Read also: Explainer: DPE survey and new energy audit for properties in France
Properties rated ‘G+’ (the most inefficient among the G-rated properties) have been banned from the rental market since January 1, 2023 (for new leases and renewals), while all G-rated homes have been banned from being let since January 1 this year.
F-rated homes will be banned from 2028, and E-rated homes from 2034.
The ban applies at the point of signing a new contract, or renewing a tenant’s contract, or at the date when it is renewed tacitly (typically every three years).
Bill aims
The rejected bill concerned properties in a copropriété, which typically refers to blocks of flats (or complexes of several blocks), where individual flats are owned privately but communal areas (eg. entrances and stairwells, lifts, corridors, grounds etc) are in shared ownership.
It aimed at avoiding disputes, especially in situations where work would be needed on communal areas as well in a given owner’s flat, to raise the flat’s rating sufficiently, and the agreement of all the other co-owners would be required (for example, at the annual general meeting) - but the other owners refuse.
The bills’ proponents have estimated that some 250,000 properties could be affected linked to this, by the end of this year.
Similarly, the bill provided for an exception where a tenant refused to allow the landlord to carry out necessary work (it also provided that, if they did allow it, tenants were entitled to a reduction in rent during the works).
The Fédération nationale de l'immobilier (Fnaim) has calculated that renovations on G-rated properties to bring them up to standard cost €40,000 on average.
Reaction to the rejection
Housing Minister Valérie Létard said she was frustrated at the rejection, saying that it left landlords without pragmatic solutions.
MP Bastien Marchive, who had tabled the bill along with Inaki Echaniz, also regretted its failure to pass.
He told Le Figaro: “This PPL provided legal clarity for landlords and tenants, and adapted the timetable for flats. Today, where this text could have brought flexibility and pragmatism, its rejection will not allow us to take into account the reality on the ground.”
Mr Marchive and Mr Echaniz withdrew the bill at the end of the day’s debates.
Similarly, property professional group Unis said that the failure to pass the bill would now mean that landlords will face penalties, even in situations where they are not entirely at fault.
“The fate of G properties is sealed; the landlords concerned will be liable to penalties, even if the necessary renovation work depends on decisions taken by the copropriété,” the group said. “They could be ordered to reduce or even suspend their rent.”
Yet, the Unis group was happy that one point in the bill would not come to bear: “The text stipulated that the landlord should bear the additional cost of energy bills for their tenant [in the event of the rating not being improved]. This is very shocking in cases where the landlord is not entirely responsible for the situation,” the group said.
‘Better solutions needed’
Zahir Keenoo, chairman of property group Foncier ADB, has argued that better solutions need to be found.
He said that thousands of renovation projects had already been started on G-rated properties, which had only happened because of the deadlines and strict rules on renting.
“We need to find collective solutions, instead, such as allowing private landlords to deduct such work from their taxes,” he said.
Mr Marchive and Mr Inaki say they remain “convinced of the need for a bill” to clarify situations that the loi Climat et Résilience does not cover or did not foresee, such as the property crisis and rising energy prices.
What must landlords do now?
Landlords now have to follow the limits laid out in the 2021 loi Climat et Résilience, without exception.
This means that they must undertake renovations to bring their G-rated properties up to standard if they wish to be able to rent out their properties.
A DPE includes an energy audit, which suggests ways in which the home can be improved to make it more energy efficient, and raise its DPE rating. The audit specifies the projected cost of the work, and the energy bill savings that will be achieved once the work is done.
It should also inform the owner of which financial aids might be available to perform the works.
New audits can be undertaken by firms with the audit énergétique en maison individuelle qualification, those with RGE offre globale certification, and certified diagnostiqueurs.
You can find an auditor at either of these two government websites:
The audit is likely to cost anywhere from €400 to €1,000 or more, depending on the property.
DPE evaluations are valid for 10 years.
The misleading display or manipulation of a DPE evaluation is punishable by a fine of up to €3,000 for individuals or for €15,000 for companies.
It could also lead to the obligation to compensate a buyer or tenant.
Further information can be found on the government website available here.
