Rental investment: MPs bury the Pinel tax advantage

The National Assembly rejected amendments aimed at extending the rental investment system after 2024.

No longer hope to invest in real estate with tax exemption thanks to Pinel. The National Assembly rejected, this Thursday, October 24, several amendments from deputies, such as Thibault Bazin, Emilie Bonnivard, Laurent Wauquiez and Didier Le Gac, which aimed to extend this rental investment system by one year or three years, expected to expire at the end of this year.

The device Pinel will therefore disappear, as expected, December 31, 2024after 10 years of existence. For the record, it allows the purchaser of a new home to benefit from a reduction in their income tax from 9% to 14% of the purchase price, if they agree to rent it for 6 years , 9 years or 12 years, at a price lower than the market price, to people whose reference tax income does not exceed certain ceilings.

An expensive and ineffective device

Housing professionals, starting with the Federation of Real Estate Developers (FPI), called for its extension, in order to support the rental investment of individuals in the context of a real estate crisis which never ends. Especially in the absence of new aid for rental investment, such as the creation of a real status of the private lessoralso rebutted on Wednesday by the National Assembly.

But the Minister of the Budget, Laurent Saint-Martin, and the general rapporteur of the Budget to the Assembly, Charles de Courson, opposed it, in the name of the cost and the ineffectiveness of Pinel, denounced by “everyone who rated it”including the Court of Auditors. “Pinel contributed to the increase in construction costs and caused over-construction in certain locations”tackled Charles de Courson again. As for Laurent Saint-Martin, he underlined “the need to undertake a global reflection on housing taxation, which benefits from too many niches”.

Home sales in free fall

During his last economic update, at the beginning of September, Pascal Boulanger, president of the FPI. did not dare imagine the magnitude of the plunge that will follow the Pinel shutdown:“85 to 90% investments by individuals in rental real estate are made thanks to Pinel.

Only 8,300 homes were sold to individual investors in the first half of 2024, i.e. three times less than in previous years, recalled Thursday the deputy Thibault Bazin (Republican Right), author of one of the amendments in favor of the extension of Pinel.