Rental property: what if Pinel was maintained in 2025?

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While Pinel is due to end on December 31, the Federation of Real Estate Developers is relying on a report from the Court of Auditors to demand its continuation. Better still, its return to its 2022 version, which is more advantageous for investors.

If you want to reduce the amount of your income tax through a rental investment, now is the time! The Pinel scheme, which offers you a tax advantage if you buy a home to rent it at a rent 10 to 15% lower than the market price, will disappear on December 31, 2024, after 10 years of existence. The government considers it indeed inefficient and expensiveTo the great displeasure of the Federation of Real Estate Developers (FPI), which fears a worsening of the fall in sales of new homes.

As Pinel lives its final months, sales of new homes to private investors have already plummeted by 30% in the second quarter of 2024, compared to the same period last year, according to figures released this Thursday, September 5 by the FPI. Its president, Pascal Boulanger, does not dare to imagine the extent of the plunge that will follow the‘Pinel ruling :“85 to 90% of private investments in rental property are made through Pinel.”

“When you want to kill your dog, you say it has mange. That’s what the government did with Pinel.”

But the FPI, and you yourself, who would like to make a rental investment to pay less taxes, have just found an unexpected ally. It is the Court of Auditorswhich, contrary to its 2018 conclusions on Pinel, praises its effectiveness in a report published this Thursday. Both in allowing modest tenants to live in good quality apartments with affordable rents, and in allowing the construction of housing that would never have seen the light of day otherwise.

The FPI therefore intends to use this report to ask the next government, within the framework of the draft finance bill for 2025to extend Pinel after December 31. And this, by returning to the Pinel of 2022, less restrictive than the “Pinel +” which took over in 2023 and which forces individuals to invest in housing with very specific qualities of energy performance and comfort. “When you want to kill your dog, you say it has mange. That’s what the government has done in recent years with Pinel, claiming that it didn’t allow for the construction of quality housing. The Court of Auditors sweeps this nonsense away.”asserts Jacques Ehrmann, general manager of the developer Altarea and vice-president of the FPI. The latter considers it all the more urgent to resurrect the old Pinel formula since, due to a lack of available housing, “The rental market is in a catastrophic state”with a large number of French people, particularly students, who have great difficulty finding accommodation.