Government introduces rent cap on garret flats

French landlords who rent out small garret appartments, known in France as chambres de bonnes, at excessively high rents, are to be taxed. The government has introduced rent caps as a way of fighting increasingly high rents for this kind of housing, often used by students or others living on low-incomes.

AFP/Boris Horvat

The shortage of housing in big cities, especially Paris, means even smalll top floor garrets or maid's rooms measuring less than 14 square metres are regularly rented out for around 600 euros a month.

Under new regulations which came into effect on 1 January, rent on such flats is now capped at 40 euros per square metre.

Landlords charging any more will have to pay a tax ranging from 10 per cent to 40 per cent depending on how much they exceed the rent benchmark.

Budget Minister Valérie Pecresse says the measures are part of a "the more you abuse, the more you're taxed" approach, designed to deter landlords charging extortionate rents for student rooms.

Over the last 10 years the price of renting a garret flat in Paris has gone up by 58 per cent.

However, not everyone is convinced of the merits of the tax. UNEF, the largest student union, welcomed what it called good intentions but said the tax was insufficient to fix the housing crisis.

Real estate professionals meanwhile have underlined that the majority of such flats are rented out on the black market and will therefore escape the new regulations altogether.