Half of Ile-de-France’s housing stock could be banned for rent
Construction companies will stop their work on Ile-de-France. To accelerate energy renovations, the Climate and Resilience Act of 2021 prohibits the rental of thermal filters, labeled from G to E according to the energy performance diagnosis (DPE). Obviously it will be progressive, G from 2025, F 2028 and E 2034, but starting from January 1, housing with the G + classification, that is, consuming more than 450 kilowatt hours per m² per year, is prohibited for rent. But most importantly, it concerns a large number of residences, as half of the primary residences are currently classified as E, F or G, in Ile-de-France.
The Paris Region Institute (IPR) issued a note last October showing that “Ile-de-France has a higher energy-consuming housing stock than other regions (45% versus 40%)”. But with the new DPE (see box), the numbers have been refined and we have therefore moved to half of the residences. “Overall, we have 27% of habitat classified as E, 13% F, and 11% G, said Sandrine Beaufils, demographer at the HKI Department of Housing and Health. And in a region as tense as Ile-de-France, pulling in two years 10% of the housing stock, that can’t be ignored. »
560,000 G housing units in Ile-de-France
So of course not all of G’s accommodation is rented and the occupant owners can obviously keep them. But it’s still housing to renovate if you want to keep offering the same rent. “To get an order of magnitude there are 560,000 G of residences in the region while the development target on the Ile-de-France which is not often achieved is 70,000 residences”, says Sandrine Beaufils. “We have felt a shortage of rental supplies since January, testified Olivier Princivalle, president of Fnaim Grand Paris. Either the owner no longer wants to rent, or they prefer to sell it. It is already very difficult in Paris to rent accommodation, there is a hurdle. »
The goals are therefore very ambitious, some would say too much, and the thing is that “for now, it’s a bit fishy on all sides,” said Sandrine Beaufils. “There are no positive factors to suggest that it is feasible,” added Olivier Princivalle. First, there’s the question of cost. “On average, for energy renovations, we reach 1,000 – 1,500 euros per m² without counting the inflated material prices, real estate agents specify. And when you can’t isolate from the outside, for example at the Haussmanian in Paris, you have to do it from the inside. Which meant reducing the surface area of his house, fixing electrical connections, painting, and all that driving up bills. Not to mention that “interior insulation makes the molding and wood disappear”. “In a public meeting on energy renovation, the first question people have is how much it will cost and what kind of assistance they are entitled to receive. They are very cash,” reports Jacques Baudrier, Paris deputy in charge of the building’s ecological transition.
The magic power of public money
If Olivier Princivalle lamented the weakness of the financing mechanism, the elected communists made sure to “do their best” knowing full well that “if you don’t support people with public money, you can’t do it”. This is why last summer, the municipality decided to upgrade the “Eco-renovating Paris” condominium system by adding a “+”. This means that not only are low-income owners now eligible, but also condos that are classified from G to E, meaning that “most condos qualify”. This is evident in registration on the “coachcopro” platform, which provides access to a help system, which increased almost tenfold between October 2021 and 2022.
“For example, for an average of 20,000 euros of renovation work per house, you can get 3,750 euros from My Renovation Prime. [le dispositif gouvernemental], plus 4,000 euros in Eco-renovating + and 2,100 euros in property tax exemption, which provides 50% co-financing”, explains Jacques Baudrier. With this set, the Paris City Hall hopes to increase from 2,000 renovated housing units in 2021 to at least 6,000 in 2026, knowing that it will need to reach 40,000 per year by 2030 to achieve the goals set by the government. “The march is huge,” admitted the Paris adviser.
Moreover, according to Olivier Princivalle, “in some buildings, like Haussmanians, despite all the work, we will never get to D”. “The feedback shows […] that the work done is not synonymous with adequate energy savings”, shows the IPR record. Lastly, even if you decide to start your renovation work, you should still find a company to do it. “There are not enough trained and certified RGE professionals [Reconnu Garant de l’Environnement] “, complained Sandrine Beaufis.
Faced with these difficulties, president Fnaim Ile-de-France asked the government to adapt the calendar to reality, in particular by lifting “the ban on rents when condominiums have started the energy upgrade process”. He also advises owners to be well informed and not to hang around to start work. Jacques Baudrier presides over a large public meeting (the next one is January 19 at the 13th arrondissement town hall) to present the Eco-Rénovons+ system. “Of all the public gatherings I’ve held, this is the one with the most crowds,” he said. “We can feel a change in household behavior that pays more attention to the accommodation label,” added Sandrine Beaufils. However, is this awareness enough to reach the goal on time?