Another blow to the wallets of many French people.
This is a discreet development that could further complicate the return to school for millions of French people. The information has not yet been made official, but in a few days, many tenants risk receiving very bad news from their landlord. A letter or an email to announce what everyone could do without: a rent increase.
Among the nearly 13 million French people who live in housing without owning a home, many could be forced to dig a little deeper into their pockets in order to keep their homes. The government will soon be communicating on this. A new blow to come for many households.
Once a year -only-, landlords can decide to increase their tenant’s rent. But be careful, it is impossible for them to do as they please and apply an excessive increase. The law regulates this in order to avoid abuse. Generally, it is on the anniversary date of the contract, that is to say 1 year, 2 years, 3 years exactly… after signing the lease that an increase can be applied.
Starting October 15, several tenants could receive an injunction to pay higher rent. While the maximum percentage increase is not yet known because the month of September, taken into account in the calculation, is not yet over, a trend is clearly emerging, considering the past months. According to our in-house estimate, the rent revaluation index should increase by 2% on October 15.
In concrete terms, a person who moved into their home on October 15, 2023 for a rent excluding charges of 500 euros could, as of October 15, 2024, be ordered to pay 2% more, or 510 euros excluding charges, the latter being calculated separately. It is likely that the increase will be even a little lower than that, around 1.88%, which would represent 9.40€ more each month. This is a maximum increase. Each owner is free to apply it, to increase the rent only moderately or not to touch it at all.
Not all tenants are affected by this possible increase. Only those whose rental reference index, indicated in the rental contract, is that of the 3e quarter (of any year) are at risk of paying higher rent. Landlords will be able to notify them at any time, up until October 14, 2025.