Estate agencies are struggling to provide enough properties for rent and demand is increasing.
The number of properties on the rental market has dropped by more than a third (34%) in the last 12 months, a study by the large estate agents' federation Fnaim shows.
This is despite demand for rental properties increasing by 23% across the country.
Around half of all estate agencies in the country have fewer than 10 properties available to rent at any given time, with 10% not having any.
In the Paca region (Provence-Alpes-Côte d’Azur) of southern France; 88% of agencies have fewer than 10 properties to rent despite demand almost doubling.
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Paca has seen the sharpest fall in rental supply – 43% in 12 months – and Paris has also seen a 40% fall compared to this time last year.
Occitanie (37%) Île-de-France (32%), and Normandy / Auvergne-Rhône-Alpes (29%) have also seen sharp drops in supply levels.
“For several years now landlords, who have been badly treated by the public authorities, have had to deal with a never-ending stream of constraints,” said president of Fnaim Loïc Cantin.
Rent controls, rental permits, compulsory energy renovations, and skyrocketing property taxes are some of the constraints he highlighted.
“For the past 18 months, the economic equilibrium of rental investment has been disrupted all the more, as inflation and rising energy costs have spared no one,” he added.
In light of this, many landlords are looking to sell their rental properties, which they see as time consuming or as not providing enough return – especially if old and set to be heavily affected by upcoming energy regulations.
As with the fall in supply, demand is also heavily influenced by region.
Demand in Paca increased by 42% – the highest in the country – followed by Paris (36%) and Nouvelle-Aquitaine (28%).
This is due in part to an increase in those unable to access a mortgage (caused by high interest levels and banks’ reluctance to lend), forcing them to continue renting where previously they would have bought.