New Regulatory Provisions for Housing and Ecological Transition Effective January 1, 2025
Starting January 1, 2025, significant regulatory measures will come into effect, reshaping the real estate sector to address the challenges of energy transition and environmental protection. These measures aim to promote energy-efficient renovations of buildings, enhance tenant protection, and align real estate practices with national climate objectives.
Ban on Renting Properties Rated G on the Energy Performance Certificate (EPC)
The Energy Performance Certificate (EPC) is a critical tool in real estate, assessing a property’s energy and climate performance on a scale from A to G, based on its energy consumption and greenhouse gas emissions.
In accordance with the Climate & Resilience Act, as of January 1, 2025, properties classified as “energy sieves” (rated G on the EPC) can no longer be rented out. This prohibition applies to both new rental agreements and the renewal or tacit extension of existing leases. Consequently, landlords must undertake energy renovation work to ensure their properties meet minimum energy efficiency standards before they can be rented.
These regulatory changes, part of a broader ecological transition strategy, aim to improve the rental housing stock by reducing energy consumption and greenhouse gas emissions while enhancing tenant comfort and safety.
Continuation of MaPrimeRénov’ Subsidies in 2025
In 2025, MaPrimeRénov’, a cornerstone of public policies for energy renovation, will maintain its current framework, providing significant financial support to individuals seeking to improve the energy efficiency of their real estate assets.
Subsidies for Targeted Renovation Projects
Grants for individual renovation projects (such as insulation, heating system upgrades, etc.) will continue throughout the year. Beneficiaries can still access these subsidies without the requirement to provide an Energy Performance Certificate (EPC), ensuring broad and simplified access to financial aid.
Incentives for Comprehensive Renovations
Financial incentives for large-scale renovations, aimed at achieving a complete energy transformation of a property, will also remain at high levels. This support is designed to encourage property owners to undertake ambitious, long-term projects that maximize building energy efficiency.
Through these measures, MaPrimeRénov’ remains a key driver for modernizing the housing stock, improving occupant comfort, reducing energy bills, and contributing to the ecological transition.
Strengthening the Fight Against Energy Poverty
As part of the objectives set by the Climate & Resilience Act, new measures have been introduced to intensify the fight against energy poverty, a critical issue in the real estate sector. These provisions aim to enhance the quality of private rental housing while protecting tenants from the negative impacts of poor energy performance.
New Energy Decency Standards Based on the Energy Performance Certificate (EPC)
From January 1, 2025, rental properties owned by private landlords and rated G on the EPC will no longer be considered energy-efficient. As a result, these properties cannot be rented out unless they are upgraded to a higher energy performance standard.
The energy decency criterion is now added to traditional landlord obligations, such as ensuring safety, habitability, and the absence of health risks. This legislative development is designed to protect tenants from "energy sieves," which are often synonymous with high utility bills, while also encouraging landlords to invest in energy-efficient renovations.
Implications for Landlords
Affected property owners will need to carry out energy improvement works, such as thermal insulation of walls and attics, replacement of outdated heating systems, or installation of energy-efficient equipment. Non-compliance could result in an inability to lease their properties, potentially impacting the profitability of their real estate investments.
Impact on the Private Rental Housing Market
This measure is expected to enhance the overall quality of the rental housing stock by reducing the number of energy-inefficient properties. It aligns with a broader strategy of energy transition and promotes the value of real estate assets that meet environmental standards.
By strengthening these requirements, the legislation aims to combat energy poverty while aligning the rental market with climate imperatives.