Since January 1, 2022, the RE2020 environmental standard has come into force for new constructions. For the moment, it only concerns individual dwellings. This new measure aims in particular to continue improving the energy performance of new buildings. It will have a significant impact on construction costs.
We can estimate the increase between 5 and 10% on construction costs excluding land, says Julien Serri, national delegate for technical affairs of the French Building Federation (FFB). The impact of RE2020 is therefore not to be taken lightly as construction represents, on average, two-thirds of the total price of a house. This new standard has been imposed for all new constructions of individual housing since January 1st when building permits are filed. Obviously the consequences will be different depending on the type of project. For a rectangular one-storey house, this increase in costs will be more like 5%, unlike the houses with floor or designed in a more atypical way with stalls, for which this additional cost will be between 7 and 10%.
Indicators to respect
RE2020 introduces major changes compared to RT2012, in particular by taking into account the environmental footprint of buildings and the definition of indoor temperature thresholds (Summer discomfort). The temperature inside the building must therefore not exceed 26C at night and up 28C the day. Where RT 2012 required the calculation of 3 indicators (Bbio, Cep and Tic), RE 2020 imposes 9: 5 on the energy performance and 4 on the carbon impact of buildings. For Julien Serri, the latter is the main surcot position. The second factor to take into account is energy performance, in particular insulation and heating. The insulation should indeed be reinforced by 30% compared to the RT2012 and that naturally, a cost. Similarly, on the heating side, switching to a heat pump, highly recommended, will increase the initial budget, significantly, up to + 10%. Today six out of ten new houses are already equipped with a heat pump, tempers Julien Serri. The exposure of the house will be just as important. If the accommodation is not exposed to the south, this risks causing additional costs to bring it up to standard, adds the national delegate for technical affairs of the FFB. In return, the application of these new standards should make it possible to significantly reduce energy bills. According to the Minister of Ecology, the electricity bill for a typical new house with a heat pump will be around 200euros/year, or less than 17euros/month!
When filing building permits, owners will also have to provide thermal and carbon studies. These studies, carried out by specialist firms, cost between 500 and 1500 euros. Added to this are the end-of-site checks, which are billed at around 500 euros, describes Julien Serri.
Concrete effects on certain households
The additional cost will inevitably have an impact on households with more modest incomes. Having a house built is the dream of a large number of French people. The problem is that the more constraints there are in the new regulations, the less we have the possibility of building, regrets Julien Serri, some may need to revise their project for smaller, more compact homes.
According to Sylvain Challande, franchise real estate broker vousfinancer.com, with the new standard, it is necessary to plan for a 10% increase in the purchase budget. Thus, for a construction project of 250,000 euros in RT 2012, it will spend 275000 euros with the new standard, i.e. an increase in the amount borrowed by 25,000 euros. The consequence is an increase in monthly payments of 110 euros for a couple who borrows 275,000 euros at a rate of 1.3% over 25 years (with a borrower insurance rate of 100% for each), according to the calculations of Sylvain Challande. In the end, the additional cost of 25,000 euros for the loan reaches 33,000 euros over the entire duration of the loan.
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As a result, some households may have to review their project since the High Council for Financial Stability (HCSF), chaired by the Minister of the Economy, has tightened the screws on the conditions for granting mortgages. Since January 1st, what had hitherto been considered good practice has now become the rule. Under pain of sanctions, banks are now obliged, with some exceptions, to respect two commandments: borrowers cannot commit to periods of more than 25 years and their monthly loan payments will not exceed 35% of their income.
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However for Sylvain Challande, it is still a little early to judge the impact of this measure. We will have a decline within six months a year. The financing plans will integrate it from now on. There was an acceleration in requests for financing in December, continues the broker. In order not to depend on this new standard, the owners have submitted their building permit beforehand. There is a risk of demand for additional envelopes for construction in 2022. Especially since according to the latest figures from the Federation of Property Developers (FPI), the average price of new buildings per m2 is now approaching 4,600 euros.
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The increase in the price of materials and delivery times add to the additional cost
Beyond the additional cost of construction, it will also be necessary to add the increase in the price of materials. According to the FFB, the prices of construction products have exploded in 2021. The biggest increases concern steel, like flat products or beams, as well as PVC products, which soar by more than 60% between the end of 2020 and 2021. Especially since, even if RE2020 will have a minimal impact on the costs of materials which are already increasing, in some cases delivery times will be longer. For example, for a heat pump, today, it sometimes takes between 10 and 20 weeks of lead time, adds Julien Serri.
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What about apartments?
Despite everything, the RE2020 standard should not deter the French from building their house. Building co-responsibly is a widely shared concern, especially if it is accompanied by the possibility of spreading the costs and leading to real savings. According to the FFB, 398,000 dwellings should be started in 2022, i.e. an increase of 8,000 units over one year (+2.1%). On the other hand, the forecasts anticipate a fall in authorizations (-7.8%) which will weigh on activity in 2023, in connection with the additional cost of the RE2020 and compliance with the recommendations of the HCSF.
When it comes to collective housing, it’s a whole different story. The RE2020 only applies for the moment to individual housing but it will concern collective housing by 2025. While, still according to the FFB, permits in the collective have contracted, further accentuating the crisis in new housing in tense areas. The federation estimates a loss of 7,000 collective buildings for 2022, a decrease of 3.2% compared to 2021.
Asked by The world, the Minister of Housing minimizes the impact of the implementation of the RE2020. In his view, the price increase will not exceed 4%, or even less like the previous impact of RT2012. The additional costs anticipated during the development of the RT2012 were 10% to 15% of the construction costs, but the general commission for sustainable development analyzed a posteriori that these had only slightly materialized and had been quickly absorbed by learning effects.
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