The government wants to put an end to energy hungry properties. Several measures have been introduced to help eradicate so-called “energy-guzzling” buildings. It will gradually become impossible to rent out accommodation with a poor energy rating: F or G ranked properties. In terms of property sales, purchasers are increasingly concerned about the environment and energy savings, and are shifting towards properties with a good energy performance. This, of course, can push up the price of green-rated properties, compared to properties with a poor energy rating which may need significant energy efficiency refurbishment involving additional expense for the purchaser.
The Climate and Resilience bill is accelerating change
The Climate and Resilience bill calls for a ban on the renting out of so-called “energy-guzzling” properties, in other words badly insulated buildings that use a lot of energy. Furthermore, the government states that: “tenants renting so-called ‘energy-guzzling’ properties will be able to insist that landlords carry out renovations. By 2028, landlords will be unable to increase rent on F and G-rated housing (energy-guzzlers) when renewing a lease or finding new tenants.”
With more than 4.8 million “energy-guzzling” properties in France, these measures aim to reduce energy expenditure by owners and tenants, and accelerate energy transition.
Good to know: to this end, the energy and climate law of 8 November 2019 introduced certain measures, including: from 2021 onwards, banning landlords from increasing rent between tenants without first renovating energy-inefficient properties with the option, in certain instances, of asking tenants to contribute towards these renovation costs; from 2022, requiring owners to carry out an energy audit when selling or renting out a property, in addition to the energy-efficiency assessment (DPE); from 2023, a ban on the renting out of the most energy-inefficient homes, which will be redefined as “inadequate,” and requiring owners to make any necessary changes by 2028.
Ban on renting out of properties with a G energy rating from 2023
Decree No 2021-19 of 11 January 2021 relating to energy efficiency and the definition of what constitutes decent housing in metropolitan France states that from 2023, the minimum efficiency threshold for rental properties will be fixed at 450 kWh/m2/year. In other words, G-rated properties.
Update on energy ratings in the context of a sale
In terms of property sales, when purchasing a house or flat, buyers are advised to check the mandatory technical surveys and pay attention to the DPE, a rating grade between A and G which indicates the energy consumption. The DPE is just one of the mandatory technical surveys required when selling or renting a property.
A new type of energy-efficiency assessment for July 2021
Energy-efficiency assessment is changing in July 2021. It will be more reliable, accurate and legally enforceable; it will indicate the energy efficiency of a property and its greenhouse gas emissions as well as providing an estimate of the total annual energy bill.
MaPrimeRénov: energy renovation aid for owners
If you want to sell or rent out a property, you may need to carry out some renovation. Given these new regulations and the sums involved in energy-efficiency refurbishment, the Government has introduced MaPrimeRéno, a financial assistance scheme that is open to all: owner-occupiers, landlords and co-owners. The scheme aims to help renovate 500,000 properties a year.