The Paris Administrative Court cancels a year of rent supervision believing that the elements used for the calculation of rent ceilings are wrong.
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The supervision of rents is canceled in Paris for leases signed between 1 er July 2019 and June 30, 2020: thus decided the administrative court of Paris on July 8, 2022. The Consequence is that the owners who would have been attacked by their tenant, because they had not respected the supervision of rents in a lease signed during this period, cannot be condemned and have to pay compensation.
This decision follows an appeal exercised by the National Union of Real Estate Property (UNPI), an association which represents the landlords. The latter had attacked the decree of May 28, 2019, taken by the prefect of Paris, fixing the level of reference rents according to the geographic sector, the date of construction of the accommodation and its size. This reference rent is then used to calculate the authorized ceilings: rents cannot be greater than more than 20 % of the reference rent.
In its decision, the first chamber of the Paris Administrative Court agreed with the UNPI which believes that the housing categories and the geographic sectors referred to by the decree were determined on the database too old. Indeed, to fix the reference rent, the prefect is based on the reports of the Observatory of rents in the Paris region (OLAP) which observes sector by sector the level of Parisian rents.
Now the OLAP had provided elements stopping in 2017, the court estimated that this did not allow a fairly fair analysis of the market to set reliable reference rents two years later. The purpose of the supervision is, in fact, to limit the most glaring abuses: maximum rents must therefore be determined realistically compared to the market.
no change for other cities
For the moment, the orders concerning the supervision of the years 2021 and 2022 are not impacted by the decision of the court and the other cities which practice the supervision of rents are not affected either.
The system will therefore remain in place in Lille, in the agglomeration of Plaine Commune and that of East Ensemble, but also in Lyon, Villeurbanne, Montpellier as well as Bordeaux from July 15. “We will continue to attack the orders wherever possible because we believe that the supervision is counterproductive: he discourages the landlords lessors to rent their accommodation with increasing difficulties in finding themselves in the private rental park”, warns Christophe Demerson, president of UNPI.
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