The background and convictions of Valérie Létard, the new Minister of Housing, perhaps make her “the most judicious of all the Prime Minister’s choices” to form his government, believes Henry Buzy-Cazeaux, president of the Institute of Real Estate Services Management. But will Valérie Létard be able to avoid a reduction in the housing budget when the state of public finances requires billions of euros in savings?
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– Will the minister, who previously opposed the reduction of the solidarity rent (RLS), be able to prevent the allocation for social housing from being reduced further?
Michel Barnier has finally named his government. Housing stakeholders were eagerly awaiting two decisions: first, they wanted to know what importance would be given to this portfolio and, of course, they were curious about the person to whom it would be entrusted. They have two reasons to be satisfied. They were hoping for a full-fledged minister, in a way a full-fledged minister, and not just a delegated minister, reporting to a larger ministry. This is the case with a Minister of Housing and Urban Renewal, with a broader scope of responsibility compared to her predecessors and a higher protocol rank. In short, this government organization chart makes housing a higher cause.
Then, the choice of Valérie Létard is perhaps the most judicious of all those of the Prime Minister. Social worker at the beginning of her career, elected during her political life at all levels of local authority in the North, from the commune to the region, senator and vice-president of the Senate, having sat in two governments in the past, she is a woman of the field, sensitive to the concerns of households, with a broad view and knowledge of the State apparatus. We can add that this woman grew up in the Christian Democratic culture, the one that gave
in the country Eugène Claudius-Petit, emblematic minister of reconstruction, Jacques Barrot, Pierre Méhaignerie, Pierre-André Périssol, all ministers who made a mark for France, without taking away from other sensibilities, in particular on the left, the fact that they have generated estimable ministers.
The biggest danger is the reduction of the housing budget
Clearly, the casting is good and the awareness of the issues too. It is now important that the new minister takes the action best suited to the situation of the sector, with a view to optimising public funds. She will have to guard against two dangers, both coming from Bercy. What is the risk for housing? The sector fears that measures will not be taken, which would revive activity by making demand solvent, through an extended zero-rate loan and through an attractive tax system for investors in new and renovated existing buildings or through means for energy renovation. But the greatest danger is the reduction in the housing budget. Having fallen from 45 billion to 37 billion in around seven years, it could well be forced to undergo a slimming cure and contribute to the reduction of around 20 to 25 billion in the overall budget of the nation. What would the new government cut? Everything is possible, from personal assistance to residual tax assistance, after the end of Pinel, including financial assistance for property.
We can clearly see that the President is still in control and that the conviction that the market must self-regulate is still embodied at the top of the State. Will the minister, who previously opposed the reduction of the solidarity rent (RLS), be able to prevent the allocation of social housing from being reduced further, before even thinking that she can go back on the RLS? Will the one who believes in first-time accession of the popular masses, invented over a century ago in her region, have the power to ensure that the PTZ is not further reduced, even before bringing in single-family homes or re-establishing the APL accession? And will individual investors, more necessary than ever, keep the possibilities of charging charges and deductions that common law allows them, even before
to imagine a Pinel bis? As for MaPrimeRénov and energy saving certificates, the speeches from above are already preparing us for their reduced power, if not their asthenia…
Real estate is the easiest target for taxation
The second risk is a corollary: the overtaxation of real estate. We already know that France will not avoid an increase in taxes and duties. Political leaders reassure us: only the rich and companies that make considerable profits will be affected. Workers, hard-working middle and senior managers, small and medium-sized businesses, sleep soundly! We would like it, but will the French tax vampire, when it comes to drinking the blood of the living forces, discern between the victims? Especially since it could well remember a great tax principle: the most effective taxation is based on a broad base with a low rate, and not the other way around. The yield of the IFI is not comparable to that of VAT or the taxation of property income. At this
In this game, it is enough to set the wealth bar low enough so that the taxpayers targeted are infinitely more numerous. We are also hearing again about taxing the capital gain on the sale of principal residences.
Another way to load the boat, which seems to be on the agenda: withdraw resources from local authorities and force them to increase local taxes, including property tax on built properties or exceptional taxes on vacancies or second homes. Real estate is the easiest target for taxation, immobile, non-relocatable, essential for the life of households and businesses. We would like Mrs. Létard’s mission to be exhilarating. It first has the thankless dimension of avoiding the worst in the sector of activity for which she is responsible. We will already be grateful to her for that.
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