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Protection of purchasing power

Capping rent increases to a maximum of 3.5%, 3.5% increase in housing subsidies

Publié le null - Directorate for Legal and Administrative Information (Prime Minister)

Crédits : © lucid_dream - stock.adobe.com

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To limit the impact of inflation on the household budget, the Act of 16 August 2022 on emergency measures for the protection of purchasing power provides for certain measures to curb rent increases. A "rent shield" to cap rent increases to a maximum of 3.5 per cent is being put in place for one year, until June 30, 2023. Housing subsidies (APL, ALF and ALS) are increased by 3.5% retroactive to 1er July 2022.

Indexation of housing rents capped at 3.5%

The "rent shield" is intended to limit the increase in the benchmark rent index (IRL). For revisions made on 3e 2022 quarter to 2e in the quarter of 2023, the increase in the IRL shall be limited to:

  • 3.5% in mainland France;
  • 2 % in Corsica;
  • 2.5% overseas.

Rents will not be allowed to increase above these percentages set during the application of the "rent shield" until June 30, 2023.

The Rent Benchmark (IRL) is used as a basis to revise the rents of empty or furnished dwellings. It sets the annual rent increase limits that landlords can charge their tenants when the lease includes an annual rent review clause. The evolution of the IRL is defined each quarter by INSEE in line with the evolution of prices which recorded a net increase in 2022 due to inflation.

  FYI : As far as the Corsican community is concerned, it is theOrder No. R20-2022-10-11-00012 published in the Code of Administrative Acts of the Prefecture of Corsica, which stipulates that the change in the benchmark rent index may not exceed 2% between the 3rd quarter of 2022 and the 2nd quarter of 2023.

Upgrading of housing subsidies

The Law of 16 August 2022 on emergency measures for the protection of purchasing power increases housing subsidies (APL, ALF and ALS) by 3.5% with retroactive effect to 1er July 2022.

No steps are required to benefit from the increase, the payment is automatically made by the Family Allowance Fund.

  FYI : If you are a recipient of the Cif, you can estimate the amount of your housing assistance by making a simulation. If a right to personal housing assistance is assessed, you can make a direct online application.

If you are not a Cif recipient, you must first create your personal space to apply for housing assistance.

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