“It has never been so difficult to become an owner for the first time or a tenant,” laments the president of the Laforêt network

On the real estate sales market, in 2023, one in four French people “have canceled or postponed their real estate project, in a context of inflation and more than difficult access to credit”, Yann Jéhanno said on Tuesday on France Inter.

“Becoming a first-time homeowner has never been more difficult”that is to say first-time buyer or “tenant”, said Tuesday January 2 on France Inter Yann Jéhanno, president of the Laforêt real estate agency network. Yann Jéhanno notes that the rental market “is totally frozen” In France. Proof of this is that the Laforêt network noted in 2023 a 26% increase in the number of rental candidates and a 28% drop in rental properties on the market. “This shows the extreme tension on the rental stock”deplores the president of the network of real estate agencies.

Yann Jéhanno notes that the rental stock is failing to develop, that “the rental offer does not exist” and “existing tenants stay in their homes because they realize that they cannot buy”. This leads to an increase in “the occupancy period of five to six months only for the year 2023”, according to the president of Laforêt. In front of the “shortage of rental offers”, “there is a temptation to push prices upwards in free sectors”he regrets.

The president of the Laforêt network also explains the difficulties affecting the real estate sales market, in particular the lengthening of sales times. “We are at 90 days on national average, that’s more than nine days in a year”, affirms Yann Jéhanno. He also notes a “retreat of buyers”. According to the Laforêt network, last year, “nearly one in four French people have canceled or postponed their real estate project, in a context of inflation and extremely difficult access to credit”.

Added to this is the inexorable rise in interest rates which are today “around 4.25%” although two years ago “we borrowed at 1%”. Yann Jéhanno recalls the rapidity with which the real estate purchasing power of households has declined in France. “We have already seen interest rates at 4% in the past, but it is the brutality of the increase which has frozen real estate transactions”, he testifies. The president of the Laforêt network judges “unlikely” that these rates “decline significantly in 2024”.

To try to revive the market, the Ministry of the Economy and the Bank of France announced at the beginning of December that they would marginally adjust the rules governing real estate credit. In particular, it was decided to authorize credit institutions to exclude the interest charge associated with bridging loans in the calculation of the effort rate. Yann Jéhanno describes these measures as “rather cosmetic”. He recalls that “real estate loan production fell by more than 40% in 2023”.

The president of the Laforêt network rightly points the finger “the criteria of the High Financial Stability Council (HCSF) have become binding for two years, and in a counter-cyclical manner”. These criteria “particularly prevent access to credit” and contribute to “the reluctance of certain banks”. Yann Jéhanno notices in particular that “many profiles that were funded two years ago are now being refused funding”. “Banks have difficulty granting loans: first-time buyers are excluded, low-income households who cannot build up a contribution to guarantee good management are also put aside”he specifies.