Nearly 40% of French rental properties breach rent control laws
Nearly 40% of rented properties fail to respect rent control laws in France, according to a new report by the Fondation pour le Logement des Défavorisés, as senators prepare to discuss whether these measures should be extended beyond their current November 2026 expiration date.
The report reveals that 37% of properties in areas subject to rent control exceed legal limits, up from 32% in 2025. The current system, introduced in July 2019 under the ELAN law as a five-year experimental mechanism following earlier attempts dating back to the 2014 ALUR law, has faced ongoing challenges with landlord compliance.
In Paris, up to 46% of landlords fail to respect rent controls, with some arrondissements showing even higher violation rates. Le Figaro reports that 62% and 59% of properties in the 16th and 7th arrondissements respectively breach the rules. The capital's rental vacancy rate remains critically low at between 1% and 2%, with well-positioned apartments typically finding tenants within 7 to 15 days.
By comparison, Montpellier shows just 12% non-compliance and Bordeaux 17%, while cities including Lyon at 26% and Lille at 25% fall somewhere in the middle.
Approaching expiration drives violations
Senators will debate the renewal of rules in October, with rent caps in most locations set to end on November 23, 2026. Some cities including Paris will see rules remain in place until at least July 2027.
"We can clearly see the effects of property owners relaxing their compliance as we approach the announced end of the trial period. They may feel that rent controls are already a thing of the past and deliberately decide not to comply."
Despite the increase in landlords flouting the rules, the average amount by which rents exceed the limits is falling, down to €159 per month in 2026 from €191 in 2025.
How rent controls operate
There are currently 69 municipalities and inter-communal areas where rent controls are in place across France, mainly consisting of larger cities and their high-density suburbs, as well as popular tourist locations or areas with high student populations.
In most cases, rental units are subject to a maximum price set by local authorities when the property is first put on the market. This maximum rent is 20% above the median cost for the area. Once leased, the rent cannot be increased at will by landlords and is typically restricted to one increase per year.
Landlords are limited in how much they can increase rent, either upon renewal of a lease or when a new tenant leases the property. The increase is usually tied to the Indice de Référence des Loyers, which stood at 146.60 for the first quarter of 2026, representing a 0.78% year-on-year increase, significantly down from the 3.26% increase recorded in the second quarter of 2024.
Additional restrictions apply in France's 28 designated housing stress zones, where landlords have been prohibited from increasing rents since January 2021 if properties are rated F or G for energy efficiency. Since January 2025, properties rated G have been illegal to rent entirely, affecting more than 500,000 homes and further reducing available rental stock.
There are certain exemptions where rents can be increased above these levels, such as if renovation works have been carried out. Landlords who fail to respect rent control rules risk fines of up to €5,000 per infraction.
Exploiting loopholes and exemptions
Alongside the potential end of rules, the foundation highlights a rise in ways landlords attempt to benefit from exemptions, particularly through the use of rent supplements permitted under the 2014 ALUR law for properties with exceptional characteristics.
"In Paris, we are seeing landlords becoming more professional and learning ways to circumvent the system, particularly through the use of rent supplements."
The city allows for rent supplements for units containing an exceptional element, such as direct view of a famous landmark or high-end amenities. However, landlords are increasingly claiming these supplements for things as trivial as a coffee machine or TV, with unwitting renters paying extra.
"There is a particularly severe housing shortage, coupled with very high demand, as seen at the start of the academic year, with between 700 and 1,000 applications for a single studio apartment."
"Landlords know they will find a tenant for their property regardless of the price, so they can afford to exceed legal rent caps."
Market pressures intensify crisis
The broader housing crisis context explains much of the landlord behaviour. Demand for social housing in France climbed from under 700,000 applications in 1984 to nearly 2.8 million in 2024, while annual allocations fell from 475,000 in 2010 to 384,000 in 2024, leaving approximately 2.4 million unmet applications.
New construction has failed to keep pace, with building permits falling 23.7% in 2023 and housing starts decreasing to 23,854 units in February 2026 from an average of 31,532 units between 2000 and 2026. Paris apartment prices stood at approximately €9,739 per square meter as of March 2026, making rental investment attractive despite regulatory constraints.
One example highlighted by public service broadcaster FranceInfo is Gaspard, a 27-year-old engineer living in Paris. Using the city council's online tool to check rents are legal, he found that his 32m² flat in the 20th arrondissement was €221 per month over the cap.
He contacted his landlord about this, who said it was a rent supplement not mentioned anywhere in the contract for the property's views.
"I overlook a tiny Parisian square with a bar downstairs that stays open until 02:00. It's a bit of a stretch to call that an 'exceptional property'."
A bailiff came three days later to deliver a notice giving him three months to vacate the property as the lease would not be renewed.
"The most likely scenario is sleeping on a friend's sofa even though I'm 27, employed, and a university graduate. This is the reality in Paris today."
