In response to a housing crisis, Minister Valérie Létard is developing a strategic plan that balances immediate relief and long-term solutions. Key initiatives include a 1.1 billion euro cap on solidarity rent reductions and increased funding for energy renovations. Létard is also promoting new housing developments, addressing rental shortages, and advocating urban renewal with additional budget allocations. Support for vulnerable populations, particularly women victims of violence, is prioritized, showcasing a comprehensive approach to housing and urban policy.
Refining the Housing Strategy Amid Crisis
In the wake of a pressing housing crisis and governmental budget cuts, Minister of Housing and Urban Renewal, Valérie Létard, is meticulously shaping her strategic plan. This plan seeks to balance immediate relief efforts with initiatives aimed at long-term solutions.
During her recent appearance before the Senate Economic Affairs Committee, Létard revealed a cap of 1.1 billion euros on the solidarity rent reduction (RLS). This levy, imposed by the state on social landlords, aims to “provide landlords with more flexibility,” while concurrently committing to the construction of new social housing units.
Addressing the contentious Solidarity and Urban Renewal Law (SRU) and its Article 55, which mandates social housing quotas for certain municipalities, Létard acknowledged its “limitations” but also recognized its “value.” She argued that eliminating Article 55 would complicate efforts to meet social housing production goals.
Regarding energy renovations for social housing, the minister confirmed a budget allocation of 200 million euros for 2025—an increase from the initial proposal in the 2025 budget. This amount, however, falls short of the commitment made by her predecessor in 2023. Additionally, she indicated that the “Second Life decree,” which facilitates the renovation of older buildings to comply with new standards, will soon be implemented.
Promoting New Housing Developments
Valérie Létard emphasized the need for a comprehensive approach in construction, stating, “We are exploring all avenues to unlock potential across various segments and stakeholders.” Following the nationwide implementation of the zero-interest loan (PTZ), she is now focusing on strategies to support rental investment, particularly in light of the upcoming end of the Pinel tax incentive.
Legislative discussions are currently taking place regarding a proposal that would exempt inheritance tax for donations of new apartments for a limited duration, aiming to stimulate dormant capital. The minister is advocating for this initiative.
Furthermore, the government supports a proposed law aimed at converting office spaces into housing, which Létard hopes will swiftly progress through the legislative process. This dual-purpose initiative not only addresses housing shortages but also aims to create much-needed student accommodations in France.
Addressing the Rental Crisis
The availability of rental properties has significantly declined in recent years, with a reported decrease of 8.6% in October compared to the previous month and a staggering 22.1% drop since October 2022, as per SeLoger statistics. Valérie Létard underscored the necessity for extensive work to enhance the profitability and security of the residential rental sector.
She expressed the desire to “reassure both landlords and tenants while simplifying access to housing.” Létard also mentioned her hopes for an evaluation of rent control measures to take place by mid-next year.
Urban Renewal Initiatives
Valérie Létard advocates for urban renewal initiatives, successfully pushing to amend the 2025 budget to allocate 50 million euros to the National Agency for Urban Renewal (Anru), a significant increase from the initial proposal of zero funding. The budget for city policy reflects the “expenditures recorded in 2023.”
With respect to priority urban neighborhoods (QPV), she emphasized the need for ongoing support, declaring, “Sustainable mobilization will be a primary focus for the interministerial committee on cities, which I plan to convene in early 2025.”
Support for Vulnerable Populations
As part of the 2025 budget, 203,000 emergency accommodation spaces have been preserved, with Létard aiming to enhance “support for women victims of violence.” She insists that these individuals should be prioritized in accommodation efforts, calling for improved collaboration across various governmental sectors, including Interior, Employment, Health, Solidarity, and Education.