Bill to Restore Trust and Balance in Rental Relationships
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This French legislative proposal aims to make permanent and expand the experimental rent control framework (encadrement des loyers) that was due to expire in November 2026. The experiment, originally launched under the ELAN law of 2018, allowed certain cities to cap rents within defined limits relative to a reference rent set by prefectural decree. The bill seeks to extend the program beyond its sunset date and potentially open it to additional municipalities, ensuring that cities such as Paris, Lyon, Bordeaux, and others that have already implemented rent caps can continue to do so without interruption. It also aims to address imbalances between landlords and tenants in the broader rental market. By pérennising the mechanism, the proposal reflects growing political momentum in France to address housing affordability pressures in tight urban rental markets, where rents have significantly outpaced wage growth in recent years.
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Key Changes
- Permanent extension of the rent control experiment (encadrement des loyers) beyond its November 2026 expiration date
- Municipalities that already apply rent caps (Paris, Lyon, Bordeaux, Montpellier, etc.) can continue without legislative gap
- Potential opening of the rent control mechanism to additional eligible municipalities beyond the current experimental participants
+ 2 more changes with Pro
Obligations
What this law requires
Extend the rent control framework (encadrement des loyers) beyond its November 2026 sunset date to ensure continuity of the experimental program
Maintain rent caps within defined limits relative to reference rents set by prefectural decree in cities where rent control has been implemented
Evaluate and potentially expand the rent control program to additional municipalities beyond those currently participating
Establish and publish reference rents through prefectural decrees to serve as the basis for rent cap calculations