Canal Homes, Mortgage Rule Changes: Five French Property Updates
Call for people to renovate the old canal locks
A project has been launched in Brittany to find people willing to revitalize the old lock houses, buildings that traditionally served as accommodation for those responsible for canals or tilting locks.
Since 2008, the Brittany region has been responsible for its 440 km of public waterways, including the 156 lock houses and outbuildings that line the banks.
Some of these lock houses have fallen into disrepair due to less frequent use.
The region hopes its new initiative can attract investors to redevelop traditional buildings and turn them into viable tourism projects.
Candidates can be individuals, associations, companies or even communities.
Selected applicants will only have to pay a small fee of around €2,000 per year, depending on its size, and will be allowed to live in the house, provided they seek to create a tourism project with it. .
It can be a B&B, a cafe, a bike shop, etc.
The region will retain ownership of the houses but the investors will be responsible for renovating the interior and keeping it in good condition.
The contracts on the houses, which will be temporary occupation agreements, can range from five years to 20 years, depending on the size of the investment.
The investor search project for these buildings is led by the Brittany region, the agglomeration of Redon and the municipality of Avessac, in partnership with the Loire-Atlantique department.
Véronique Véron, head of public waterways for the Brittany region, said the idea is not to attract people looking for cheap accommodation, but for those who want to develop the houses into viable tourist projects. .
“Dreamers looking for cheap accommodation shouldn’t apply,” she said.
“The region is looking for solid economic projects with people ready to invest and even create jobs.
Those interested have until Monday, August 29, 12:00 p.m. to submit their application.
This is the third time that a call for investment in lock houses has been launched, following similar initiatives in 2013 and 2015.
#call for projects “Tourist promotion of lock houses and waterways”
Already (or soon) in love with the Pays de Redon, do you know how to spot the potential, are you inventive and ❤️ the challenges? https://t.co/JcWExMMTKY #tourism #river #fluvestre #bicycle tourism #bretagneloireocean pic.twitter.com/jlvmJc3Igo– REDON Agglomeration (@RedonAgglo) January 11, 2022
The end of endless mortgages
It is no longer possible to obtain a real estate loan from a bank for an unlimited period in France.
The repayment period is now limited to a maximum of 25 years (with some exceptions), in accordance with the recommendations of the High Council for Financial Stability (HCSF).
The new law came into force on January 1.
The law is a precaution because the duration of mortgages in France is increasing.
In November 2021, the average term was 20 years, compared to 18.9 in November 2018, according to figures from the Crédit Logement CSA Observatory.
In addition to the limitation of the duration of the mortgage loan, the monthly debt ratio of the borrower can no longer exceed 35%, that is to say that his expenses, including the monthly repayment of the mortgage loan, cannot not exceed 35% of its income.
These rules were already widely followed by banks, which had anticipated that the HCSF recommendations would become mandatory.
Record mortgage loans
Property owners in France took out more than 252 billion euros in mortgages in 2021 (figures counted up to November) from their banks, the highest since 2017, when 255 billion euros were borrowed.
However, unlike 2017, these were mostly new mortgages and not renegotiations.
In 2017, 43% of mortgages granted were actually renegotiations of previous loans, which means that the total amount borrowed for new mortgages was 145 billion euros.
In 2021, only 18% of mortgages granted were renegotiations, with the amount borrowed via new mortgages amounting to around 207 billion euros.
This shows that banks are still ready to provide mortgages, despite the new rules that came into force on January 1, as mentioned above.
Increase in sales of properties with good energy performance in Ile-de-France
The number of sales of properties with good energy performance is increasing in Ile-de-France, figures from the Salon des Notaires du Grand Paris.
The rating is materialized in France by an Energy Performance Diagnosis (DPE).
Old apartments in the region with energy performance A or B now represent 5.8% of total sales, compared to 1.1% 10 years ago. Old houses classified A or B now represent 3.2% of total sales, compared to 1.1% in 2011.
C-rated older buildings are proving to be the most popular, with apartment sales up 6% over the past 10 years and house sales up 6.9% over the same period.
Sales of D-, E-, F- and G-rated older buildings have all declined over the past 10 years.
The objective of social housing is not up to par
In total, 104,800 new social housing units were financed in France in 2021, show figures from the Ministry of Housing, published on January 25.
That’s 8% more than in 2020, but still below the government’s target of 120,000.
The ministry said there was “particular concern” about poor performance in areas where housing markets are most competitive.
The government has set itself the goal of financing 125,000 new housing units by 2022, including 45,000 for the most disadvantaged.
Related stories:
Where to find the cheapest second homes in France?
How to save on your energy bills in France this winter
Renovation aid, septic tank lawsuit: five French real estate updates