Annual rise in the rent reference index capped at 3.5% (rent shield)
Article 12 of the law of 16 August 2022 on emergency measures to protect purchasing power caps at 3.5% the annual change in the rent reference index (IRL) set between the third quarter of 2022 and the second quarter of 2023. The cap is 2.5% in the overseas departments, and the prefect may adjust it in Corsica by up to 1.5 points. The IRL is used to revise residential rents each year in the private and social sectors.
Measure originators
A positive amount is revenue or savings for public finances; a negative amount is a cost or lost revenue.
Measure impact
For one year, the annual revision of residential rents cannot exceed 3.5% (2.5% overseas), while the IRL could have reached about 4.5% according to the impact assessment forecasts. For tenants, the saving can reach €536m a year in the private sector and €248m in the social sector; for landlords, the shortfall is estimated at about €705m. Housing benefits fall slightly as a result.
Official references
Sources
Procedure timeline
Follow the progress of this fiscal measure through the different stages of the parliamentary procedure.
Administrative implementation
Entrée en vigueur de la mesure et mise en œuvre par l'administration
President of the Republic signature
Publication au Journal officiel
Possible referral to Constitutional Council
Décision de conformité / censure partielle
National Assembly has the final say
Si Ă©chec CMP
Joint committee
DĂ©saccord Ă©ventuel
Debate and vote
Debate and vote
Débat et vote en séance publique à l'Assemblée nationale, ou engagement de la responsabilité du Gouvernement (article 49.3)
Council of Ministers
Validation interne