Tuesday, 30 November, 2021

Housing: MPs vote to maintain zero-interest loan in rural areas


The refocusing of the zero-interest loan on large cities, initially scheduled for January 1, 2020, was the subject of a common front of the opposition parties, joined by several deputies from the majority. At first reading, the National Assembly adopted an amendment which cancels this turn of the screw.

A recent report commissioned by the government calls for a radical transformation of the zero rate loan.

The opposition has inflicted a setback on the government in its plan to tighten the zero rate loan (PTZ) in areas where real estate is most tight. The National Assembly on Friday adopted a series of budget amendments in favor of maintaining the PTZ in rural territories (more precisely zones B2 and C), against the advice of the government and the general budget rapporteur, Joël Giraud ( LREM).

The refocusing of the PTZ on large agglomerations, initially scheduled for January 1, 2020, was the subject of a common front of the opposition parties (LR, UDI-Agir, Libertés et Territoires, PCF), joined by several deputies from the majority, including Mickaël Nogal and Stéphanie Do. This measure also sparked an outcry from real estate lobbies.

“Territorial divide”

« It is estimated that the removal of the PTZ could threaten 19,000 jobs. In addition, it would deprive some 12,000 households, generally tenants and living in social housing, of a residential path to home ownership. “, Defended the former Minister of Housing, Sylvia Pinel. Right-wing elected officials denounced ” an injustice, which contributes to the territorial divide ».

« It is also a bad blow to social home ownership. Banks consider the zero-interest loan as a contribution, which facilitates the projects of young couples wishing to become homeowners. Defended the deputy of Ardèche, Fabrice Brun (LR).

A recent report commissioned by the government calls for a radical transformation of the zero rate loan. Its authors, from the Finance Inspectorate in Bercy and the Ministry of Ecological Transition, believe that this tool has no triggering effect on the act of purchase in the majority of cases. Hence their recommendation to maintain the refocusing planned for January 1, 2020, especially since a first tightening of the screws on rural areas, which entered into force in 2018, did not have, according to them, the feared effect on construction of new housing.

Renovation of city centers

Despite the low rates, the PTZ continues to cost the state between 750 million and 1.3 billion euros each year. A sum that could be directed towards tools favoring more the renovation of city centers than the construction of new housing, underlines this report. ” We see houses collapsing in the heart of towns, while housing estates are built on the outskirts, lamented the LREM deputy, François Jolivet. You have 30,000 homes in Marseille that are not maintained, and 2,000 are being built around ».

The majority proposed to maintain the PTZ only for the areas hit by the closure of a defense site and for the heaviest rehabilitations. This intermediate solution did not win support on Friday. Unless another compromise is found by the second reading in the Assembly in December.

The refocusing of the zero-interest loan on large cities, initially scheduled for January 1, 2020, was the subject of a common front of the opposition parties, joined by several deputies from the majority. At first reading, the National Assembly adopted an amendment which cancels this turn of the screw.

A recent report commissioned by the government calls for a radical transformation of the zero rate loan.

The opposition has inflicted a setback on the government in its plan to tighten the zero rate loan (PTZ) in areas where real estate is most tight. The National Assembly on Friday adopted a series of budget amendments in favor of maintaining the PTZ in rural territories (more precisely zones B2 and C), against the advice of the government and the general budget rapporteur, Joël Giraud ( LREM).

The refocusing of the PTZ on large agglomerations, initially scheduled for January 1, 2020, was the subject of a common front of the opposition parties (LR, UDI-Agir, Libertés et Territoires, PCF), joined by several deputies from the majority, including Mickaël Nogal and Stéphanie Do. This measure also sparked an outcry from real estate lobbies.

“Territorial divide”

« It is estimated that the removal of the PTZ could threaten 19,000 jobs. In addition, it would deprive some 12,000 households, generally tenants and living in social housing, of a residential path to home ownership. “, Defended the former Minister of Housing, Sylvia Pinel. Right-wing elected officials denounced ” an injustice, which contributes to the territorial divide ».

« It is also a bad blow to social home ownership. Banks consider the zero-interest loan as a contribution, which facilitates the projects of young couples wishing to become homeowners. Defended the deputy of Ardèche, Fabrice Brun (LR).

A recent report commissioned by the government calls for a radical transformation of the zero rate loan. Its authors, from the Finance Inspectorate in Bercy and the Ministry of Ecological Transition, believe that this tool has no triggering effect on the act of purchase in the majority of cases. Hence their recommendation to maintain the refocusing planned for January 1, 2020, especially since a first tightening of the screws on rural areas, which entered into force in 2018, did not have, according to them, the feared effect on construction of new housing.

Renovation of city centers

Despite the low rates, the PTZ continues to cost the state between 750 million and 1.3 billion euros each year. A sum that could be directed towards tools favoring more the renovation of city centers than the construction of new housing, underlines this report. ” We see houses collapsing in the heart of towns, while housing estates are built on the outskirts, lamented the LREM deputy, François Jolivet. You have 30,000 homes in Marseille that are not maintained, and 2,000 are being built around ».

The majority proposed to maintain the PTZ only for the areas hit by the closure of a defense site and for the heaviest rehabilitations. This intermediate solution did not win support on Friday. Unless another compromise is found by the second reading in the Assembly in December.