PARIS, July 1 (HUZHEN) -- France is promoting a social housing sales program at prices 20 percent lower than the market, according to French media outlet LaCroix. Eligible home buyers can purchase a home at a low cost. In 2022, 11,834 units were sold nationwide, but the expected target was still not reached.
In France, a little-known but attractive way to buy a home is quietly emerging – buying social housing. Even if you are not a tenant of social housing, anyone can buy such housing at a price of about 20 per cent lower than that of the private market, as long as certain conditions are met, and thus become a homeowner at a lower cost.
That's how Martina, a 70-year-old retiree, realized her dream of buying a home for many years. Six months ago, she bought a three-bedroom apartment in Conflão-Saint-Honorin, Yvelines, for 148,000 euros, 18 to 22 percent lower than the local private market. "If I hadn't discovered this opportunity, I would never have been able to afford a house on the private market. You won't find a house here for less than 180,000 or 190,000 euros. Martina said excitedly.
In addition to the price advantage, the purchase of social housing can also save on intermediary fees and can also enjoy lower notary fees in some areas. "This is a very attractive opportunity that should be known to more people, and it will help young people to achieve their dream of buying a home more easily," Martina said.
To buy social housing, certain social conditions need to be met: the income does not exceed the prescribed ceiling (in 2022, in the Paris region where Martina is located, the annual income of a two-person family was capped at 50,603 euros) and made it their main residence. The purchaser can be an existing tenant (who has lived in the rental for at least two years), their children or parents, or even a tenant of other social or private housing (subject to income criteria). To prevent excessive speculation, purchasers are not allowed to resell at market price for five years of occupancy.
The Bienveo.fr platform created by the National Housing Coalition (USH) centralizes sales information from all social housing organizations. In addition, some social housing providers such as 3F, ICF Habitat and LogiRep of the Polylogis Group also post sales information on their websites.
Although the sale of social housing was incorporated into co-ownership laws as early as 1965, the practice is still in its infancy in France. According to USH, a total of 11,834 social housing units were sold nationwide in 2022, about half of which went to existing tenants or other social housing tenants. This figure is still small compared to the national social housing stock of 4.5 million units and is well below the target of 40,000 units per year set by the Alur and Elan laws.
In the Paris region, only 1,362 social housing units were sold in 2022, a negligible fraction compared to the stock of 1.3 million units. This disparity may stem from a lack of information and limited purchasing power of the target population, although such buyers can apply for a special preferential Zero Interest Rate Loan (PTZ).
For housing providers, the sale of social housing can finance new housing. Karin Julien-Elkheim, president of the Polylogis Group, said: "Selling one apartment can finance the construction of two or three new homes." However, not all social housing is available for sale. Housing providers need to select properties that are in good condition, are energy efficient, and have been built for at least 10 years, with a sufficient number of tenants buying interest.