Report “We need a rebalancing”: in Saint-Malo, some owners accept the increase in the housing tax on second homes

As it is becoming increasingly difficult to find accommodation in Saint-Malo, the town has decided to increase the housing tax for second homes, hoping that this will encourage owners to put their homes on the rental market.

In Saint-Malo, in Ille-et-Vilaine, a quarter of the homes are second homes. While the housing tax has been abolished for primary residences, this is not the case for second homes. Thanks to a new decree, municipalities can choose to increase the tax by 5 to 60%. In 2024, 1,461 municipalities have chosen to introduce this increase, compared to 308 in 2023, including Saint-Malo.

For those who live there year-round, like Annie, it makes sense to charge more for those who live there less.. “It’s completely normal because here, there is a real housing problem, especially for young people. A lot of people who had a lot of money had control over a lot of housing, so a little rebalancing is still needed.”

In Saint-Malo, the price per square meter has exploded: +50% in five years. Even owners of second homes like Jean-François understand this increase in housing tax, an additional source of income for the city. “Let’s say that we don’t like it too much in general, but hey, there’s maintenance to be done and people also want leisure activities. You need equipment. You can’t go against it.”

The aim of this measure is to encourage owners to put their homes back on the rental market. A message that is nevertheless hard to get across. Sandrine lives in Saint-Malo three months a year. With this increase, she will pay 600 euros in housing tax. But for her, renting out her seaside residence is out of the question.

“We love Saint-Malo, so we’re certainly not going to change our habits because there will be 600 euros more, that’s for sure.”

Sandrine, owner of a second home

to franceinfo

The same observation is made by this real estate agent on the seafront. He does not see the real estate market unblocking. “It won’t change anything, because people who own a property as a second home are quite attached to it. They are a fairly well-off population and so that’s not what will make them give up their property and put it back on the market.”

With this increase in the housing tax, the municipality will above all make money: two million euros more each year. And with this money, Mayor Gilles Lurton wants to build social housing for home ownership. “I want to give people who benefit from social rental housing the opportunity to one day or another access property ownership.”

A way to increase the number of main residents in Saint-Malo. A major challenge for the municipality. “For me, a city lives from its main residents. We have schools that need to be kept alive. We have businesses that need to be kept alive and we need to have young, active people living in our city, that’s very important.” For the next three years, the municipality has already committed to building 4,500 additional homes.