The French Senate unanimously adopted a proposal on May 21, 2024 to strengthen regulation of the tourist rental market, specifically targeting platforms like Airbnb. The initiative, originally proposed by Members of Parliament Annaïg Le Meur and Iñaki Echaniz, was met with support from local officials who have seen a rise in short-term rentals impacting traditional rental markets and driving up real estate prices in popular areas. While the majority of conservative-leaning lawmakers in the National Assembly initially opposed the proposal, citing concerns for small property owners, the Senate, led by members of the right-wing majority, fully backed the legislation. Senator Max Brisson, for example, criticized the speculative nature of short-term rentals and the tax advantages associated with them, highlighting the transformation of his own city of Biarritz from a real town to a tourist destination.
The proposal primarily aims to address the tax benefits that owners of tourist rentals currently enjoy. This advantage, which has faced criticism, even from the Housing Minister Guillaume Kasbarian, is seen as excessive and unfair. The government, while generally opposed to including tax provisions in regular legislation, acknowledges the need for change due to widespread consensus among lawmakers. The Senate, however, made slight modifications to the text by reducing the tax benefits for Airbnb-like rentals, which currently allow for a 71% reduction in rent for classified tourist accommodations and a 50% reduction for regular furnished rentals, compared to only a 30% reduction for long-term unfurnished rentals. In a departure from the National Assembly’s proposal to align short-term and long-term rental tax rates at 30%, the Senate restored a higher reduction rate of 50% for classified tourist accommodations.
The regulation of tourist rentals, especially through platforms like Airbnb, has become a major issue in France as the number of such rentals has surged in recent years. The impact on traditional rental housing markets and the rise in real estate prices in desirable locations have prompted action from lawmakers to address the issue. The proposed legislation is a cross-party effort to balance the interests of property owners and the need to ensure sustainable housing options for residents. The Senate’s endorsement of the proposal highlights the urgency and consensus around the need for increased regulation to curb the negative effects of the growing short-term rental market.
The debate over the regulation of tourist rentals in France reflects broader concerns about the impact of platforms like Airbnb on housing affordability and availability in major cities and tourist destinations. The changes proposed in the legislation aim to create a more level playing field between short-term rentals and traditional long-term rentals, addressing issues of tax implications and market distortions. The decision to modify the tax benefits for tourist rentals is a step towards ensuring that the housing market remains fair and accessible to all, while also safeguarding the unique character and affordability of neighborhoods impacted by the influx of short-term rentals. The proposal represents a significant effort to strike a balance between encouraging tourism and protecting local housing markets from the negative consequences of unregulated short-term rentals.
In conclusion, the unanimous support for the regulation of the tourist rental market in France by the Senate reflects the recognition of the need to address the growing challenges posed by the rise of platforms like Airbnb. The proposed legislation aims to mitigate the impact of short-term rentals on traditional housing markets and real estate prices, while also ensuring a fair tax system for property owners. By balancing the interests of property owners, residents, and local authorities, the legislation seeks to create a more sustainable and equitable housing market that benefits all stakeholders. The changes made by the Senate to the initial proposal demonstrate a willingness to engage with different perspectives and find solutions that address the complex issues surrounding the regulation of tourist rentals in France.
