Drafting of Bills
The proposed law on the regulation of seasonal rents, carried out by deputies Annaig Le Mure (Renaissance) and Inaki Ikaniz (PS), went through a complex legislative process. Launched in spring 2023, it was adopted at first reading in the National Assembly on January 29, 2024, before intense debates. Amendments were proposed, compromises were made, and, finally, the Assembly endorsed the text, 100 in favor and 25 against.
Main steps of the text
One of the key measures of the Bill is the reduction in the rate of tax relief which is availed on income from the rental of furnished tourist accommodation. Currently, this reduction is 71% or 50%, but the new law will reduce it to 30%. However an exception is made for “very sparsely populated rural areas”, where the reduction will be at 71%.
“This is to prevent owners from switching their accommodation from traditional rentals to seasonal rentals, which are more financially attractive”The reporter of the text mentions Annaïg Le Meur.
In addition, the law strengthens the decision-making power of mayors. They can specifically reduce the maximum period of rental of principal accommodation from 120 to 90 days or ban the rental of thermal class G housing, which is considered “Thermal Strainers”. Municipalities would also have the right to establish quotas of housing authorized for seasonal rental by district, as Saint-Malo has put it. Nothing will stop them from completely banning tourist fares in certain areas.
Owners wishing to rent out their property for tourist rentals would not only have to notify their municipality (as already was the case), but also their co-ownership trustee.
Contradictory reactions
Responses to the bill have been varied and sometimes passionate. Airbnb representatives expressed their preference for collaboration with municipalities rather than strict regulations. Not surprising when we know the history of this company and its constant fight against the norms and laws governing its activity.
Defenders of tenants’ rights have logically welcomed the initiative, also calling for the elimination of all tax benefits favoring short-term seasonal rentals.
A response to the housing crisis in tourist areas?
Local elected officials decry housing shortages fueled by the proliferation of seasonal rentals, particularly in heavily touristed areas. In many city centers or neighborhoods near tourist attractions, an increasing portion of the rental stock is reserved for seasonal rentals and is unavailable to residents of these cities. Citizens struggle to find affordable housing, sometimes creating a terrible chain reaction: closing schools and everyday businesses, in favor of businesses aimed at tourists, pushing residents out of these sought-after neighborhoods.
These local elected officials are sounding the alarm, asserting that this housing crisis has become a real “social bomb” to defuse. Some laws already regulate seasonal rentals, and some are specifically related to online platforms like Airbnb. But this option is so profitable for owners that these control measures struggle to prevent the phenomenon, especially since illegal rentals remain so numerous, and the platforms show relative enthusiasm to combat them.
Before returning to the National Assembly, Annaigue Le Muir and Inaki Ikaniz’s bill must now be examined by the Senate.
