Real Estate: Why Rental Properties with Poor Energy Efficiency Remain Available on the Market

Real Estate: Why Rental Properties with Poor Energy Efficiency Remain Available on the Market

Starting January 1, 2025, renting properties rated G on energy performance assessments will be prohibited in mainland France under the Climate and Resilience Law. Despite this, over 600 G-rated rentals remain available, with many agencies not updating their listings. While some agencies are working to comply, others continue to list these properties, citing delays in enforcement. The government insists inspections will occur, and landlords of G-rated properties cannot sign new leases, although existing agreements are unaffected.

Are you considering renting a property deemed a ‘thermal sieve’? As of January 1, 2025, the answer is likely no. This date marks the implementation of a key provision from the Climate and Resilience Law, which was passed in 2021 for mainland France. Under this legislation, properties that receive a G rating on their energy performance diagnosis (DPE)—the lowest possible score—are classified as ‘indecent’. Consequently, landlords are prohibited from renting out these subpar properties.

The Reality of G-Rated Properties on the Market

In reality, however, the situation tells a different story. On January 10, over 600 listings for G-rated properties were still available for rent on the SeLoger website across France. Additionally, a concerning 18% of rental listings did not display any DPE, according to data from industry sources. This suggests that many real estate agencies have not yet updated their listings in compliance with the new regulations.

One real estate agency in eastern France defended its actions, stating, ‘We had a G-rated property available for rent before the law was enacted.’ They added, ‘Insulation work is currently in progress, and it will not be rented out with a G rating.’ They assured that a new diagnosis would take place prior to renting the property.

The Foncia group emphasized that ‘it is the owner’s responsibility to undertake necessary renovations.’ They claimed they are actively working to eliminate G-rated listings from their site. ‘This is due to the automatic integration of properties once a tenant moves out, but we ensure that G-rated properties are not re-listed.’ They also mentioned ongoing IT developments aimed at resolving these issues.

Enforcement of the New Rental Regulations

Some professionals in the real estate sector acknowledge that they are still permitting owners to rent out thermal sieve properties. A Parisian agency mentioned that ‘due to governmental oversight, the enforcement of this measure may be delayed.’ They continue to post G-rated listings while awaiting further guidance from authorities.

Contrary to this, government officials clarify that the new regulations are indeed in force as of January 1. Owners of around 567,000 G-rated properties in the private rental market are prohibited from entering into new rental agreements since the start of the year. ‘Inspections will be conducted’, promises the ministry responsible for Housing.

These inspections will be carried out by the General Directorate for Competition, Consumer Affairs, and Fraud Control (DGCCRF). They have cautioned landlords that failure to comply with the DPE regulations can lead to accountability. ‘If a rental agreement is executed in violation of the DPE rules, the tenant can take legal action against their landlord.’ This serves as a reminder to both landlords and tenants of their rights and responsibilities.

It’s important to note that this law does not affect rental agreements signed prior to January 1, 2025. The regulations apply only to new leases or tacit renewals. Existing tenants retain the right to request energy-efficient renovations for G-rated properties, and in cases of disputes, a judge may even decide to reduce or suspend the rent.