French Housing Crisis: Bruno Le Maire Announces Relaxation of Access to Zero-Rate Loan

The housing crisis is pushing the executive to react. In an interview given to South West this Saturday, the Minister of the Economy, Bruno Le Maire, announced that the conditions of access to the zero-rate loan (PTZ) in France were going to be relaxed “ in the next weeks “. This decision aims to allow “ six million additional French people » to benefit from this system, in order to cope with the rise in interest rates which is affecting the real estate sector.

The PTZ represents valuable assistance for households, in particular first-time buyers, who wish to finance their main residence in a new property or carry out work on an existing property, in particular to improve energy performance. Unlike a traditional loan, the PTZ does not require interest to be repaid. It complements another type of credit and can only represent part of the total amount borrowed.

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One of the main measures envisaged is the revision of the PTZ scale, thus allowing more young households to access it. In addition, the income ceilings not to be exceeded to be eligible for this loan depend on the municipality where the property purchased is located. Municipalities are classified from A to C, depending on the imbalance between supply and demand. According to the minister, 154 new municipalities will integrate tense areas (classified A) and will thus be eligible for intermediate housing and the new PTZ from 2024. This will concern around 4.5 million inhabitants.

The real estate market in France is bearing the brunt of the consequences of the rise in interest rates, initiated a year and a half ago by central banks and passed on by retail banks in their credit policy. Indeed, the production of new housing loans, apart from renegotiations, reached a worrying milestone in August, falling below 10 billion euros for the first time in more than seven years, according to the Bank of France.

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