French housing market to change in September

Some changes are ahead for the French housing market with estate agents fees to be capped in September and the availability of zero-interest loans to be eased off in October.

From 15 September, real estate agency fees in France will be paid by landlords with the exception of four benefits shared by the landlord and the tenant.

The easing of lending rate to zero must also encourage home ownership to a greater number of households. The stated objective of the government is to reach 80,000 zero-interest loans in 2015 against 44,000 in 2013.

The conditions for granting loan is defined in several geographic areas are also classified according to the voltage on the real estate market. Now the loan limit on the number of people within the same household and location of housing.

For example, in the “very tense” area (category B1), a couple with an income of 2250 euros per month can borrow 49,000 euros to zero instead of 43,500 euros currently.

In the “unstretched” region (category C), a family with two children living with 2000 euros per month may borrow 35,000 euros instead of 31,000 euros now and receive a deferred payment of 14 years instead of 5 years today

The new PTZ will be available in October 2014, giving time for banks to update their computer systems.