The most energy-intensive residences are now prohibited from being rented out

This is a severe blow to the owners concerned. From the 1st yearer January 2023, properties with a consumption of more than 450 kW/m2/year can no longer be rented! These are the worst energy filters, these goods are classified as F and G according to the labels set by the energy performance diagnosis (DPE), which has been mandatory for sale since November 2006 and since July 2007, the apartment rental.

Reforms in energy performance diagnostics

DPE allows you to calculate the energy performance of a property thanks to an energy classification ranging from A (best energy performance) to G (worst energy performance). DECLARATION entered into force on November 23, 2018 under Law No. 2018-1021er July 2021, the DPE was reformed to allow a more readable and representative assessment of building performance. The so-called “actual consumption” method, based on the verification of invoices, was abolished in favor of the method consisting in the evaluation of the properties of the property: type of housing, insulation, heating, etc.

The final label now set consists of a summary of two pieces of information, energy consumption and the amount of greenhouse gas emissions emitted by the residence. This depends on the worst performance in primary energy or greenhouse gases (double threshold system).

Encourage owners of energy-intensive properties to retrofit their properties

Law No. 2021-1104 of August 22, 2021, Climate and Sustainability, imposes new obligations on property owners. These regulations are intended to encourage owners of energy-intensive properties to retrofit their properties. From the 1st yearer From July 2021, rent increases are limited to properties classified F and G in stressed areas and if re-letting. From the 1st yearer January 2023, energy indicators are taken into account to assess the decent character of the apartment, so goods with a consumption of more than 450 kW/m2/year can no longer be rented (Decision No. 2021-19 of January 11, 2021). concerning the criterion of energy efficiency in determining decent housing in metropolitan France). This measure only applies to new leases signed from 1er January 2023. From 1er In January 2025, all G-rated dwellings will be affected by this rental ban. in 1er In January 2028, it will be the turn of F-rated residences, and finally, from 1er E valuation of houses in January 2034. In addition, from 1er In April 2023, a pre-sale energy audit must be carried out for houses or buildings classified as F or G in the energy performance diagnostic.

Related goods

According to figures from the General Commission for Sustainable Development, about 90 houses transmit 450 kWh per m2, or 4% of thermal sieves, including the electricity production of 70,000 private houses. France has an estimated 4.8 million energy-efficient homes, of which more than two million are rented, the vast majority in the private sector. These thermal sieves are unevenly distributed over the area according to the latest release of the quarterly barometer defined by FNAIM and the Chamber of Real Estate Diagnostics. This barometer is determined thanks to the DPE, which is reported every three months by the French Environment and Energy Management Agency. Energy-intensive goods are scarce in the south of France. Thus, the Var, Bouches-du-Rhône or even Hérault departments have less than 10% of F or G category dwellings. On the other hand, 33.9% of Alpes-de-Haute-Provence, 32.1% of Corrèze and 41.5% of Loser have thermal sieves.

Ile-de-France is mostly concerned

The cities with the most thermal sieves are mainly located in Ile-de-France. These include Paris and cities in the suburbs. Thus, Paris has approximately 40% of category F or G dwellings, 50.3% in Nanterre in the Hauts-de-Seine department, or 56.4% in Épinay-sur-Seine in the Seine-Saint-Denis department. Cities such as Marseille, Montpellier and Toulouse have only 7.6%, 7.7% and 9.4% respectively. However, some cities in Ile-de-France have very low energy-efficient goods, such as Issy-les-Moulineaux in the Hauts-de-Seine department or Val-d’Oise department, where only 3.10% of apartments are F or G belongs to the category The same is true for the cities of Pantin in Seine-Saint-Denis and Créteil (Val-de-Marne) department. “We can clearly see the effect of the construction cycle: the more new or new housing a city has, the better the DPEs rank, and conversely, cities with aging stock tend to have the most DPEs. energy-intensive”, he emphasizes. FNAIM specialists.

A challenge for private fleet owners

Although social housing performs well in terms of energy efficiency, this is less true for individual entrepreneurs. A third of social housing is now classified as the least energy-efficient. 22% of the apartments in the social housing fund are among the properties that emit the least greenhouse gases. It is estimated that housing in social housing consumes 30% less energy and 50% less water on average than housing in private houses. HLM organizations have undertaken thermal rehabilitation efforts for existing stock and are developing new buildings with low energy requirements and even positive energy. For the private fund, which includes a large part of the old apartments, the rehabilitation of these properties is the main challenge. However, according to FNAIM’s survey of energy-efficient landlords published last September to gauge landlord behaviour, 32% of landlords so far want to sell their property if they choose to renovate, compared to 26%. And 6% are considering opting for short-term rentals to avoid new regulatory restrictions. For Jean-Marc Torrollion, president of FNAIM, “it was an intuition, we have now quantified it: around 500,000 high-energy dwellings currently rented could thus leave the rental market within six years. These are mostly small areas, the purchase of which will also be difficult to finance. It will not create a category of humble owners.”

The risk of a decrease in the private rental fund

For 93% of respondents, the main obstacle to carrying out energy renewal works is the cost of the latter, while more than 6 out of 10 respondents also mention technical difficulties. Most of the energy-efficient properties in the private rental stock are located in condominiums. For these properties, it is generally necessary to carry out insulation work, which requires a collective decision taken at the general meeting of the joint property. However, the new rules only apply to landlords. Therefore, it is difficult to reach a consensus among owners and landlords on a renovation plan. However, owner-occupiers also have an interest in carrying out these energy repair operations. Indeed, these works can not only allow them to significantly reduce energy costs, but above all, increase the legacy of owner-occupiers in the long run. Indeed, for 9 out of 10 buyers, a home’s energy performance is an important criterion for their future home, according to a survey conducted by SeLoger.com (https://www.seloger.com/) in February 2021. ). This is the popular green value for a given property, which corresponds to the change in value generated by the property’s energy and environmental performance.

Increasing awareness of the concept of green value

With a few notable exceptions, green value has so far received little consideration in real estate valuation. The above regulatory changes change the situation. According to a study of transactions in 2021, French notaries record an 8% capital gain for properties of categories A and B and a 6% loss in thermal sieves. According to Se loger/Meilleurs Agents, a study published in May 2022, the average loss for many owners can drop to 8% without the city of Nice, or even exceed 10%, as in major crown cities.

This phenomenon is particularly less noticeable in stressed areas, as highlighted in the note of French notaries on the real estate situation, compiled in October 2022 and dedicated to the concept of green value. So still according to the figures of the Se lodger/Meilleurs Agents study, the average loss observed in the most stressed areas of the west coast, such as Nantes (-3%) or Rennes (-3.3%), is lower. In Paris, where these energy filters generally correspond to older apartments with high ratings, such as those in Haussmann buildings, energy-efficient properties sell for as much as 1.1% more than apartments with better energy labels.

Does the discount mean increase?

This discounting phenomenon may increase in the future if landlords sell energy-efficient properties en masse. However, according to relevant experts, the volume of operations related to thermal filters has already increased. The share of G-class apartments built before 1947 in sales is increasing. on the 4the In Q2 2021, they accounted for 33% of transactions versus 18% in Q4.e In the quarter of 2019, according to the statistics of notaries, notary experts who analyzed that the ban on renting part of the class G apartments announced in 2021 from 2023 may have accelerated the decision to sell to the owners of this type of apartment. We can see the continuation of this trend in 2022. A May 2022 survey by Se loger/Meilleurs Agents highlights that many owners of G and F properties are choosing to sell them rather than renovate them. Sales of energy-efficient properties in Paris, where the housing stock is old and two-thirds of residential buildings are classified as E, F and G, have increased by +34% in a year. By comparison, sales of homes classified as A, B, C or D increased by just 1.8% over the same period. The same phenomenon is observed in other cities such as Strasbourg (+28.3%), Lyon (+23.5%) or Nice (+20.6%). On the other hand, it is too early to know if this real estate influx will have a downward impact on real estate market prices.