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Rent Reference Index (IRL)

Verified 14 October 2022 - Directorate for Legal and Administrative Information (Prime Minister)

Power to Buy Act: rent review capped

Published on : 14 Oct 2022

Where the lease so provides, the rent for the dwelling may be revised annually by the value of the annual evolution of theIRL: titleContent.

For revisions to the IRL published from October 2022 to July 2023, the increase will be capped (3.5% in mainland France, from 2% to 3.5% in Corsica, 2.5% overseas).

That's what it says article 12 of the purchasing power act no. 2022-1158 of 16 august 2022 .

The Rent Reference Index (LRI) is used as a basis for revising the rents of empty or furnished rented accommodation. The annual evolution of the LRI determines the maximum rent increase that the homeowner can apply for the year.

Warning  

the rent of a dwelling subject to the 1948 act shall be reviewed annually in accordance with specific rules not related to the LRI.

The Rent Reference Index (LRI) is used as a basis for revising the rents of empty or furnished rented accommodation. The annual evolution of the LRI determines the maximum rent increase that the homeowner can apply for the year.

There is a rent reference index (LRI) per quarter:

General case
IRL Values

Quarter

Year

Date of publication in the Official Journal

IRL Value

Annual Change

3e quarter

2022

coming

136.27

+ 3,49%

2021

16 October 2021

131.67

2e quarter

2022

14 July 2022

135.84

+ 3,60%

2021

16 July 2021

131.12

1to quarter

2022

16 April 2022

133.93

+ 2.48%

2021

17 April 2021

130.69

4e quarter

2021

15 January 2022

132.62

+ 1.61%

2020

17 January 2021

130.52

Corsica
IRL Values

Quarter

Year

Date of publication in the Official Journal

IRL Value

Annual Change

3e quarter

2022

coming

134.30

+ 2%

2021

16 October 2021

131.67

2e quarter

2022

14 July 2022

135.84

+ 3,60%

2021

16 July 2021

131.12

1to quarter

2022

16 April 2022

133.93

+ 2.48%

2021

17 April 2021

130.69

4e quarter

2021

15 January 2022

132.62

+ 1.61%

2020

17 January 2021

130.52

Overseas

For accommodation located in Guadeloupe, French Guiana, Martinique, La Réunion or Mayotte:

IRL Values

Quarter

Year

Date of publication in the Official Journal

IRL Value

Annual Change

3e quarter

2022

coming

134.96

+ 2,50%

2021

16 October 2021

131.67

2e quarter

2022

14 July 2022

135.84

+ 3,60%

2021

16 July 2021

131.12

1to quarter

2022

16 April 2022

133.93

+ 2.48%

2021

17 April 2021

130.69

4e quarter

2021

15 January 2022

132.62

+ 1.61%

2020

17 January 2021

130.52

You can know the previous IRL values and previous annual changes .

Please note

The LRI is based on the average of the evolution of non-tobacco and non-rent consumer prices over the last 12 months.

Indication to be taken into account

The IRL to be taken into account is different depending on the type of accommodation:

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Private Housing

The LRA date to be considered is the date specified in the lease. This may be the annual end date of the lease or some other date agreed upon between the owner and the lessee.

If the IRL date to be considered is not specified in the lease, the last IRL published by theInsee: titleContent at the time of signing the lease.

Social Housing (HLM)

The rent is reviewed every 1to January.

The IRL date taken into account is 2e quarter of the previous year:

  • In January 2023, the rent will be increased by 3,60%
  • However, in January 2024, the rent increase will be capped (3.5% in mainland France, 2% to 3.5% in Corsica 2.5% Guadeloupe, French Guiana, Martinique, La Réunion, Mayotte)

FYI  

if the social landlord has done rehabilitation work, they can revise the rent differently, for a limited period of time.

Calculation

To calculate the rent revision, the landlord needs the following 3 elements:

  • Amount of rent
  • New IRL of the reference quarter (planned in the lease or published by theInsee: titleContent at the time of signing of the lease)
  • LRI for the same quarter of the previous year.

The calculation is to do the following:

New rent = current rent x new IRL of the contract reference quarter / LRI for the same quarter of the previous year.

Example :

Lease signed on 1to September 2018, and fixing the monthly rent at €700, may be revised to 1to September 2019.

The last index published on the date of signature of the lease is that of the 2e quarter 2018, or 127.77.

The new index published on the revision date is that of 2e quarter 2019, or 129.72.

1to September 2019, date ofre the amount of the rent must be calculated as follows: €700 x 129.72 / 127.77 = €710.68.

To do this calculation, you can use the following online service:

Calculate rent review

The annual rent review may be made within one year of the date of revision of the lease.

The rent review does not apply retroactively, but only from the date of application.

When the one-year period has elapsed, the unapplied revision is lost to the owner.

Example :

  • If the revision date is March 13, 2022, the landlord may revise the rent until March 12, 2023.
  • If the review date is March 13, 2022, but the landlord does not request it until June 13, 2022, only rents collected from that date may be reviewed.

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