why is housing more expensive for the French?

Since the beginning of the year, the conditions to be met to obtain a home loan have been stricter for individuals. “The movement is accelerating with the return of inflation and the uncertainties linked to the war in Ukraine. Between March and April, the number of bank loans granted collapsed by almost 14.5% compared to compared to last year”indicates the journalist David Boéri, present, Tuesday, May 24, on the set of 12/13.

Credit interest rates have risen: the average rate for a 20-year credit was 1.34% in April, compared to 1.5% today. However, banks “virtually no longer make any margin on mortgages” and “therefore prefer to limit them as much as possible”, continues the journalist. In addition, rental prices are also rising, because “Rents also follow inflation”. The benchmark rent index has increased by 2.46% over one year since April 2021. The annual revaluation concerns seven million households in the private sector and five million households in the social sector, concludes David Boéri.