Rental prices: why would we see a record increase in France?

Rental prices: why would we see a record increase in France?


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In a general context of rising prices, rents will rise in France in the coming months. The rent index, just published by INSEE, is indeed rising sharply.

On April 16, INSEE published the new rent index (IRL), on which many landlords rely to revise their rent. And bad news for tenants: it has risen sharply in the last quarter.

“Such an acceleration is rare”

In the first quarter of 2022, the IRL stood at 133.93, representing an annual increase of 2.48%. For comparison, the increase was only 1.61% in the fourth quarter of 2020. So a significant increase, a direct consequence of inflation. Indeed, the IRL is calculated from the average, over the last 12 months, of consumer price developments. “Such an acceleration is rare,” said Lionel Maugain, head of money at 60 million consumers. Inflation has been unheard of since the 1980s.

The IRL sets ceilings for the annual rent increases that landlords may require. So many rents will have to increase in the coming months.

To calculate the approved rent increase the following calculation must be made: current rent x new IRL of the contract reference quarter / IRL of the same quarter of the previous year = new rent. For example, a rent of 700 euros will increase, after the implementation of the IRL, to 718 euros.

When can the landlord increase the rent?

Rents are regulated in France and there are several rules. First of all, the landlord can increase the rent only if the lease provides for it. “A classic lease primarily contains the annual review clause, the expert explains. However, if the lease does not contain this clause, the amount of rent can not be increased.”

The landlord is also allowed to increase the rent only once a year. “Either the increase is scheduled for a fixed date in the lease, or for the anniversary date of signing the lease.” When the one year period has elapsed, the unapplied review is lost to the owner. Note that the application has no retroactive effect.

“Interested tenants will notice this increase in their rental notice,” says Lionel Maugain.

Can the tenant bid?

“If the owner decides to increase, it will be difficult to dispute why it is provided in the contract,” the expert confirms from the beginning. However, if he has difficulties, the tenant can try to negotiate, amicably, with his landlord “.

Another scenario: if the revision does not correspond to the variant provided by INSEE. “If he can not convince the landlord that he made a mistake in his calculation, the tenant has the option to seize the Departmental Conciliation Committee for free. “She will decide the issue.”

In any case, the situation should not improve immediately. “In the coming months there are fears of an increasingly strong rent increase. “Especially since the prices of everything that revolves around the building (raw materials, maintenance, renovation, construction, etc.) are in the process of exploding.”


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