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Rent rises restricted

AN URGENT measure to restrict rent rises came into force last month as part of a campaign promise by President Hollande.

AN URGENT measure to restrict rent rises came into force last month as part of a campaign promise by President Hollande.

Owners and tenants in housing hotspots are affected by the new law which bans any rent rise above the Rental Reference Index published by statistics body Insee.

It also bans too-high rises between tenants – but does not oblige owners to tell new tenants what the old rent was.

Thirty-eight towns and cities are involved including Paris, Amiens, Bordeaux, Lyon, Marseille, Menton and Nice. The government says the property market is very difficult and expensive to get into in these areas and rents – for those who cannot buy – have risen much more quickly than the rest of the market.

There are exceptions: where the property is clearly undervalued, where improvements have been done and if it is a furnished property.

The law will be in force for a year while the government prepares a new wide-ranging housing law for 2013.

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