Will a reform of property rights force landlords to “pay rent to the state”?

“Is it true that the house owners of their lodging should pay hire to the state”, you requested us within the Franceinfo dwell. “This isn’t a 'pretend information', it’s a legislation on the constructing which has simply been voted”, have you ever even insured. So, true or “pretend”?

MEPs adopted, at first studying, a Law proposition bearing on real estate, November 28, 2019. One of many main provisions of this textual content makes it attainable to increase a property proper which dissociates the constructing from the land. A person can thus develop into the proprietor of the partitions of his house, with out shopping for the land on which it’s constructed. The textual content is now within the palms of senators, who in flip should resolve. The legislation has due to this fact not but been adopted or promulgated.

If it comes into pressure, this property proper won’t change those who exist already: typical land possession and that by dismemberment (naked possession and usufruct). It should all the time be attainable to purchase the constructing and the land appears to. Nor will it apply to individuals who already personal their house. This new proper is meant for use solely in a really particular case: that of actual property put up on the market by a company managed partly by a public construction, in an space the place the market is in rigidity.

This property proper already exists in actuality, by means of the true joint lease. Nonetheless, it’s restricted to preparations for social entry to property, that’s to say, means-tested, and due to this fact meant just for low-income households. These leases are supplied by solidarity land organizations (OFS), non-profit constructions, created by the Alur legislation in 2014, usually operated by municipalities.

The precept is as follows: the SFO stays the proprietor of the land and solely sells the housing constructed on it. The value of land has due to this fact left the true property market. In doing so, houses are supplied at costs a lot decrease than these in the marketplace, of the order of -30% and even -40%, as a result of actual property builders normally replicate of their charges the quantity at which they purchased the land.

Underneath the true joint and several other lease, the purchasers develop into house owners for a most interval of 99 years and may transmit their property to their heirs or resell it on the identical phrases offered that the brand new house owners adjust to the circumstances. Each month, the house owners pay the OFS a payment of some euros per sq. meter, akin to the rental of the land. And the group can thus repay the long-term credit score that it has taken out to accumulate the plot.

These leases present municipalities with the means to avoid hovering property costs, but additionally to fight hypothesis on the worth of constructing land and to keep up social combine on their territory. In recent times, the OFS and their extra reasonably priced actual property packages have multiplied in Lille, Rennes, Paris and in the suburbs of Paris.

The invoice handed within the Meeting due to this fact intends to increase this proper to your entire actual property market. The textual content imagines the next system: free land workplaces (OFL) shall be created, on the mannequin of the OFS, and can provide on the market housing, workplaces or companies, by way of actual long-term extendible leases, in areas the place the market actual property is beneath stress, that’s to say the place the provision of housing is taken into account inadequate in comparison with demand.

On the initiative of the Communist deputies, it’s anticipated that these OFLs shall be majority owned by public authorities. The intention is to strengthen the powers of localities vis-à-vis non-public house owners. Above all, the invoice lets the federal government proceed by ordinance, to create these OFLs and these leases. LREM deputies argued in committee in favor of this authorization.

The invoice is introduced by the deputy MoDem Jean-Luc Lagleize, who thus intends “cut back the price of land” and “enhance the provision of accessible housing”. It takes up the suggestions that appeared within the report (file PDF) that the centrist elected consultant of Haute-Garonne gave to the Prime Minister in November 2019. Edouard Philippe had beforehand instructed him to review the best way to stem the rise in land costs, that’s to say land on that are construct housing.

We should now not let the legislation of provide and demand, mixed with conventional human greed, create a bubble of enrichment for the few.Jean-Luc Lagleize, MoDem MP for Haute-Garonnein a report back to the Prime Minister

So, can we nonetheless communicate of property, when the proprietor of a dwelling is a tenant of public land and has a proper of use? This growth modifications the very idea of property rights, a “pure and imprescriptible proper” showing within the declaration of the rights of the person and the citizen of 1789. A proper “inviolable and sacred”, whose “nobody could be disadvantaged”in response to the Constitution, “besides when public necessity, legally established, clearly requires it, and topic to simply and prior compensation”.