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Rent Capping in French Basque Country: Decree Published to Protect Tenant Residents’ Purchasing Power

Twenty-four municipalities in the French Basque Country will be able to apply rent capping, under a decree published Wednesday in the Official Journal, responding to a request from local elected officials worried about the housing shortage.

A decree opens the possibility of controlling rents to control their rise and protect the purchasing power of tenant residentscongratulates the Minister responsible for Housing in a press release.

THE authorized municipalities apply it are Ahetze, Anglet, Arbonne, Arcangues, Ascain, Bassussarry, Bayonne, Biarritz, Bidart, Biriatou, Boucau, Ciboure, Guthary, Hendaye, Jatxou, Lahonce, Larressore, Mouguerre, Saint-Jean-de-Luz, Saint- Pierre-d’Irube, Urcuit, Urrugne, Ustaritz and Villefranque.

A measure called for by many elected officials

The Deputy Minister responsible for Housing, Patrice Vergriete, announced at the end of August the next application of this measure, which allows communities to set reference rents per square meter which cannot, except in exceptional circumstances, be exceeded.

It has been demanded for a long time by many local elected officials in the Basque Country, where the proliferation of second homes and tourist accommodation is accused of preventing residents from finding proper housing.

A shutdown expected in 2024

The amount of the reference rents will be fixed by a judgment during the year 2024, according to the minister.

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Rent capping is already applied in the municipalities of Paris, Lille, Lyon, Villeurbanne, Montpellier and Bordeaux, and in the intermunicipalities of Seine-Saint-Denis Plaine Commune and Est Ensemble. It currently consists of an experiment at the national level, lasting until 2026, when the government may decide to continue it.

Patrice Vergriete, engaged in a project of decentralization of housing policy, said he was in favor of what communities can freely decide to apply the rent capwithout having to request authorization from the State as is currently the case.

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