Summary of government housing announcements: PTZ, notary fees, and incentives for builder mayors

January 22nd 2025

The government, led by François Bayrou, places housing at the heart of its priorities in the 2025 finance bill. Despite an initially vague discourse, the proposals outlined in a letter to socialist leaders sketch a "reimagined and ambitious" housing policy. Here are the key measures announced:

Expansion of the interest-free loan (PTZ)

The PTZ, previously restricted to first-time buyers in new-build properties within high-demand areas, will now be extended to all geographic zones and may include a wider variety of housing types. According to Valérie Létard, minister of housing, the PTZ remains a critical tool to stimulate construction and improve access to homeownership.

Increase in transfer taxes on real estate transactions (DMTO)

The prime minister confirmed a temporary 0.5 percentage point increase in DMTO (commonly referred to as "notary fees") for the benefit of departments. This three-year measure raises costs for property buyers—for example, an additional €1,000 on a €200,000 property. However, first-time buyers may be exempted for amounts under €250,000. Real estate professionals have criticized this measure, warning it could destabilize an already strained market.

Enhanced support for builder mayors

To promote construction and urban planning projects, the government will allocate an additional €100 million in aid to municipalities engaged in development or renovation initiatives.

Reduced contributions for social housing providers

Social housing landlords will receive a €300 million reduction in their contributions to the guarantee fund for social rental housing, underscoring their vital role in addressing the housing crisis.

These measures represent a combination of support for new construction and increased taxation for buyers, signaling a pivotal shift in French housing policy aimed at revitalizing a sector under pressure. As opportunities and challenges evolve, having guidance from experts familiar with local specifics and market dynamics is more crucial than ever.

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