Rents have been swept away by inflationary pressures

Rents have been swept away by inflationary pressures

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Clouds are gathering over the occupants. Their purchasing power was undermined for the first time, in 2021, by rising energy prices, especially gas. To quell the anger, the prime minister, Jean Castex, has introduced the “tariff shield” since October 2021, a price block at level 1.eee October 2021 to 1eee June 2022, thus relieving the 11 million individual users who subscribe to the regulated invoice.

Read also: The gas billing shield has been extended to all homes

But 5 million households that heated themselves, with a collective facility, in HLM or in co-ownership, were forgotten and only benefited from the extension of this shield from 1eee February. In addition, before 1eee By October 2021, however, gas prices had already risen by 45% in one year. In terms of the price of electricity, its increase is also, from 1eee February, with a maximum of 4% compared to the customs duties of October 2021.

Whether for gas or electricity, only subscribers with so-called “regulated” tariffs benefit from these measures – not customers of alternative suppliers. This is the case, for example, with the 15,000 tenants of the Régie immobilière de la Ville de Paris (RIVP), whose landlord had chosen the E-Pango supplier who, by default, unilaterally terminated this contract in December 2021, forcing RIVP to find a replacement by applying market prices.

Consequence: charges for each tenant will increase by an average of € 40 per month – an increase that the RIVP will split over two years to make it less brutal. “Many social homeowners have already increased their billing provisions in order to avoid very painful legalization at the end of the year.”, observes Eddie Jacquemart, president of the National Housing Confederation, the first HLM tenants’ association. The government was counting on a return to more “normal” tariffs by the autumn, a scenario disrupted by the war in Ukraine.

Read also This article is for our subscribers Rising gas prices are taking the housing sector by surprise

Towards a freeze on rents?

But the tenants are exposed to another piece of bad news on the occasion of the annual review of their rent. Current contracts in both private and community parks are adjusting to the rent index (IRL), the last price of which, that of the first quarter of 2022, published on April 18 by INSEE, jumped by 2.49% – unprecedented from 2008.

And this is just one step, as the IRL is made up of 100% of the consumer price index excluding tobacco and excluding rents for the average of the last twelve months. However, this index increased by 4.5% in March. Therefore, the IRL is not going to slow down, even if donors want to show moderation and not transmit it completely. However, according to Mr Jacquemart, “The government should consider freezing rents in 2023”.

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