Just like the price charged to buy a property, rental prices vary according to the tension in the market, i.e. the difference between the supply of housing available for rent and the demand for rent. So it makes sense that the highest rents are in the metropolises and large French student cities, where the number of renters significantly exceeds the supply of housing. To solve this mechanical rent increase in large cities, some municipalities have also introduced specific rent regulations. If Paris was the first to apply rent control in 2019, it has since been imitated. The City of Lights was followed by Lille, Lyon, Bordeaux, Montpellier and several municipalities in the respective agglomerations of these metropolises. In these territories, the landlord must respect the ceiling for determining the amount of his rent.
Specifically, they cannot claim rent exceeding the amount of the increased reference rentwhich varies depending on:
- neighborhood,
- year of construction of the accommodation
- and number of pieces.
Owners who do not respect the framework can be sanctioned and seen forced to return the overpayment their tenants. Given that rent regulation will not be applied throughout the territory, it may lead to differences in the development of rents from one city to another.