More French areas face ‘housing strain' - what this means for home owners

More than 200 communes have been reclassified as areas facing a housing shortage in France, a move which has implications on local regulations and taxes. 

A decree published on September 6 saw the zone géographique – a scale showing the competitiveness of the housing market in a given area – of over 450 communes changed.

Due to the changes, more than half of these communes were given the status of a ‘zone tendue’, or area where housing demand outstrips supply.

The newly designated communes are found across several departments. 

In particular, several communes near Dunkirk (Hauts-de-France) and in the Alps have been reclassified, based on the expected growth in the areas from job openings near the maritime city and the 2030 Winter Olympics.

Other than larger cities and urban areas of more than 50,000 residents, many coastal areas with a high proportion of second homes have also been declared as zone tendue in recent years, with residents in these areas struggling to find long-term housing. 

You can check if a property is in a zone tendue on the official government website.

What changes? 

Several changes come into force if a commune is reclassified as a zone tendue, affecting homeowners, would-be purchasers, renters, and local authorities. 

For example, the classification makes it easier for planning permission to construct new homes, including both main homes and for rentals. 

This includes logements locatifs intermédiaires (LLI), below-market-rate rental properties aimed at the middle class in built-up and in-demand areas. 

These are often seen as a safe purchase for investors looking to expand their property portfolio, due to tenant profile and demand.

The status can also allow local authorities to increase the taxe d’habitation payable on some second homes in the area, with surcharges of up to 60%. 

Authorities can also levy an additional tax on empty and unfurnished second homes in zones tendue, the taxe sur les logements vacants (TLV). 

Last year, many  new areas were able to levy this tax, paid alongside the taxe d'habitation.

Renters benefit from shorter notice periods, down to one month from the traditional three, and rent caps are more heavily enforced.

Those looking to purchase their first home can apply for a zero-interest loan (prêt à taux zéro, PTZ), which have broader eligibility criteria in a zone tendue. 

Those who already own a property may also benefit from schemes such as the ‘Loc'Avantages’ to renovate existing homes. 

If your area is classed as a zone tendue, you can check with the mairie to see what supported schemes are available.