The deduction of loan interest for real estate acquisitions should not make a comeback. The government declared itself this Friday against a series of amendments to the finance bill for 2023 proposing to resurrect this system, even in much more restrictive forms than the version introduced by Nicolas Sarkozy between 2007 and 2010 and judged at the ineffective era. These amendments were subsequently rejected.
In particular, the Renaissance group’s amendment initially adopted by the Finance Committee to allow first-time buyers to benefit from partial deductibility of their loan interest (excluding borrower’s insurance), when the housing concerned meets strong environmental requirements (letter A of the DPE) was judged to be far too costly for public finances because it was evaluated at 2 billion euros. Taking note of this amount, the Renaissance deputies undertook to withdraw their amendment.
Growing difficulties in accessing mortgages
This debate naturally refers to the effectiveness of the housing policy while the problems have been accumulating for months for buyers, first and foremost because of the rapid rise in borrowing rates which echoes the growing difficulties of access to real estate credit. The new housing sector is also faced with the inflation of construction costs and the new environmental standards RE2020 which increase the prices offered to buyers.
For only answers, the government, even if it recognizes to be concerned about the accession to the property, seems today to prefer to turn the page of the current devices of assistance to the first-time buyers or the rental investment which are the PTZ or the Pinel, leaving time, one or two years, to find more effective devices.
A page turns
” If we look at all the housing support aid for ten years, we are one of the countries that spend the most for a rather mediocre result. “, Assailed the general rapporteur of the budget to the National Assembly, Jean-René Cazeneuve. For his part, the Minister in charge of Public Accounts, Gabriel Attal, may well say to himself ” very conducive to promoting home ownership, especially among the youngest », he wonders how to get there…
The mistakes of the past
However, the current situation, in particular the sharp drop in sales of new homes and collective programs, which may ultimately fuel further price increases in the old by reducing the available supply, does it allow us to wait?
” Let’s not repeat the mistakes of the past “, retorted the deputy of the Freedoms and territories group, Charles de Courson, recalling his “ 30 years of house “. Charles de Courson, on the contrary, calls for rapid reforms, emphasizing that the tightening of the conditions set by the banks and the rise in interest rates are already leading to a fall in the proportion of first-time buyers. And to evoke in priority the problem of the conditions of access to the credit and the obstacle of the thresholds of usury.
The review of the PLF is only in its infancy but the tone is therefore set on the future of housing policy which seeks to reinvent itself. Several professional federations, in particular those representing real estate developers, have for example proposed replacing the Pinel by a status of professional lessor, a general scheme based on the principle of tax depreciation of housing. A similar pattern has long been suggested in existing real estate. But all this has a cost for public finances which are also suffering from the rise in interest rates. So as always, everything will depend on the arbitrations to fit into the overall budget, perhaps not that of 2023 but rather that of 2024.
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