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Rent Reference Index (IRL)

Verified 15 January 2023 - Directorate for Legal and Administrative Information (Prime Minister)

Power to Buy Act: rent review capped

Published on 14 October 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.

How do I calculate the revision of a rent based on the annual evolution of the LRI? What is the value of the LRI to consider? At what point can the rent for a rented dwelling with a residential lease be reviewed? We explain the rules to you.

There is IRL: titleContent by quarter:

General case
Tableau - IRL Values

Quarter

Year

Date of publication in the Official Journal

IRL Value

Annual Change

4e quarter

2022

coming

137.26

+ 3,50%

2021

15 January 2022

132.62

3e quarter

2022

15 October 2022

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

Overseas

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

Tableau - IRL Values

Quarter

Year

Date of publication in the Official Journal

IRL Value

Annual Change

4e quarter

2022

coming

135.93

+ 2,50%

2021

15 January 2022

132.62

3e quarter

2022

15 October 2022

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

Corsica
Tableau - IRL Values

Quarter

Year

Date of publication in the Official Journal

IRL Value

Annual Change

4e quarter

2022

coming

135.27

+ 2%

2021

15 January 2022

132.62

3e quarter

2022

15 October 2022

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

You can know the previous IRL 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.

TheIRL: titleContent is used as a basis for revising the rent of an empty or furnished rented dwelling with a residential lease. The annual evolution of the LRI determines the maximum increase that the homeowner can apply to the rent for the year.

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.

Warning  

For housing subject to the 1948 law, the rent is revalued annually according to specific rules not related to the LRI.

Social Housing (HLM)

The rent is reviewed every 1to January.

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

  • In 2023, rent is increased by 3,60%
  • But for 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 and 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 owner may apply annual rent review 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, 2023, the landlord may revise the rent until March 12, 2024.

However, if the landlord does not apply until June 13, 2023, only rents collected from that date may be reviewed.

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