In a stormy atmosphere, the Assembly approved the extension of a mechanism to cap rent increases at 3.5% for households and SMEs, with the left accusing the majority of opening the door to an increase rather than to “freeze” rents.
I am fully aware that this text is being examined within a short and unusual timeframe, recognized the Renaissance rapporteur Thomas Cazenave at the opening of the debates on Wednesday evening on his text, co-signed by the groups of the presidential camp (Renaissance, Modem, Horizons).
He proposes to extend until early 2024 the rental shield: a cap on the rise in the benchmark rent index at 3.5%. Introduced in the summer of 2022, it is due to expire at the end of June 2023. A similar system caps the increase in the commercial rent index for SMEs.
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With the end of the shield approaching, in a context of high inflation, the extension proposal had to be registered as a matter of urgency in order to hope to complete the parliamentary time shuttle. The government has also initiated the accelerated procedure (one reading in front of each room).
MPs Liot, LR and RN denounced the limits of the text but voted for it. Adopted overnight by 259 votes to 93, after a tense session marked by questioning and points of order, it will now go to the Senate.
Thomas Cazenave defended the urgency of extending this shield on pain of seeing rents soar by more than 6% in July. The leftist deputies replied that they should be frozen and voted against the text.
This illusion of a shield will necessarily lead to an increase, lamented Cyrielle Chatelain (ecologist). This will be contained (but) any increase would create the risk of throwing even more people into poverty, she insisted.
Tenants have already suffered a 3.5% increase (in 2022-2023) and will know with your device a new rise (…) The only answer to the height would be a freeze, abounded the communist Stephane Peu. We are asking for a white year, insisted William Martinet (LFI).
It is impossible to freeze rents, retorted Mr. Cazenave, advocating the balance between tenants and owners also affected by inflation. He also alerted to a censorship of the Constitutional Council in the event of a rent freeze or too wide extension of the shield. An argument rejected by the left who argues that past rent freezes have not posed this problem.
A strict extension (of the device) will not raise constitutional risks, insisted the Minister Delegate for Trade Olivia Grgoire. Inflation slowed in France in May to stand at 5.1% over one yearaccording to an estimate published Wednesday by INSEE.
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