Languedoc-Roussillon most popular

According to official figures, Languedoc-Roussillon is the region of France that most people move to, either from elsewhere in France (35%) or abroad (14%) - the two groups combining to make up the 49% of outsiders who were not born within the region. The region has experienced an overall population growth of 14% since 1999.

Curiously most of the new arrivals are young, either students or job seekers (in an area of traditionally high unemployment) with only 20% retired.

Among the results of the influx are a thriving construction sector (mainly new individual houses), the development of high quality health care services, research and tourism.

France has the highest property prices

In a study of more than a dozen European countries, consultants Deloitte confirm that Frances is one of Europe's most expensive countries in which to buy or rent property. In Paris in particular, prices often exceed 8000 euros per square metre, double that in some other European capitals. France's has also witnessed some of the highest property price rises - averaging over 6% - compare with the rest of Europe. However, despite increasingly attractive interest rates at just under 4%, the French are also among the lowest indebted in Europe - about half the British average.

As always, it should be borne in mind that there are enormous variations in property prices across France, where in some areas the average price per square metre is below 2000 euros.

It was former President Sarkozy who observed earlier this year that France is the only country in the world where property prices rise during a crisis!

Source: LeParisien 12 June 2012

What's included in a property sale?

This thorny question arises frequently on the various French property forums, by both buyers and sellers, so a further clarification is perhaps opportune.

In order to avoid any subsequent disagreements prior to or at completion, buyers and sellers should agree from the outset what precisely is included in the property sale, and draw up a list of what items are included and those not. This is important as misunderstandings can occur - for example, over what is meant precisely by a 'fitted kitchen' or 'fully equipped kitchen': does it include a cooker, hob, built-in oven, refrigerator, dish-washer and so on. The buyer's expectations may differ widely from those of the seller!

Such a list can be attached to the 'compromis de vente' (pre-sale contract) and included as a condition of sale when the parties get together to sign the 'acte finale' on completion.

Buyers are advised to visit the property immediately before completion in order to ensure that the property is in the condition in which they first saw it and agreed to purchase. This includes any work that may have been done, in agreement with the vendor, but otherwise nothing should have been done to alter the list of items included in the sale.

In the absence of an agreed list (not advisable) the Notaire handling the transaction may propose an 'indicative list' which normally includes items the buyer would expect to see left behind by the vendor. Among the items most frequently disputed are light fittings, door furniture, blinds, hanging rails for curtains, heaters/radiators, kitchen equipment, hanging rails inside cupboards etc.

Living small, thinking big!

I am currently involved in selling my Mediterranean beachside apartment and finding an alternative in my nearest large town (Perpignan). As an alternative to advising clients on buying French property, I have found that I have revised my ideas over the months I have been searching (a luxury as I am not in a rush to sell), notably on the question of optimum size.

I am a great fan of small-scale living and because purchase price, local taxes and building managements charges are all more or less calculated on the basis of square metres, I have revised my personal requirements downwards. I am particularly keen to find a top-floor apartment offering good ceiling height (4 metres are ideal) and the chance to install a mezzanine, which under French regulations (loi Carrez) is not counted as official living space - but can add a third or more to the size of an apartment.

In doing this I have been encouraged by websites such as the American www.apartmenttherapy.com which has just held its annual competition to find the most attractive small space submitted by fans of the blog; and another site www.faircompanies.com which has some interesting videos on small-scale living in the town or countryside, both in America and Europe (including France).

Finally for those thinking of buying some land and doing their own thing, I recommend the latest title in the excellent 'Archi Pas Chère' series called Nouvelles Maisons* . It is in French but presents some interesting examples of houses built on small plots, offering 100 square metres or more of family living space, and using the latest technologies to provide warmth and insulation. Pictures and floor plans are included, plus the contact details of all the architects concerned.

Again I shall be writing about this in the July or August issue of French Property News. 

* Nouvelles Maisons by Olivier Darmon, Editions Ouest-France, September 2011.

Buying to let furnished

France has a huge private rental sector, estimated at 98% of rented properties owned by private landlords (compared with just 2% by institutions such as banks and insurance companies). Out of France's 27 million households, just over 11.6 million (40%) live in rented accommodation - of which 6.55 million are in the private sector.

This furnished rental sector represents a major opportunity for small investors and is a more secure alternative than short-term furnished holiday lettings - June to September in the warm south, during the ski season in the winter. Furnished rentals normally involve an annual lease (renewable) and tenants are often young and mobile, students or salary earners, and tend not to stay for more than two or three years. For them the furnished rental is a more attractive alternative to buying or even renting (and equiping) an empty house or apartment for a relatively short period.

The French fiscal authorities recognise a category of small entrepreneur or furnished property renter (loueur en leublé non-professionnel) with an attractive tax regime. The rules for 'long term' furnished rentals, based on a one year renewable lease, are less onerous than for unfurnished rentals (which provide wide protections for tenants for whom it may be their main home). They generally involve less management than, say, holiday lets requring frequent changeovers and cleaning between rentals.

I shall be providing a longer article on the subject to appear in French Property News in the autumn.

P-D de R.

Decline in new-build construction

A report in Le Figaro notes that construction of new-build properties declined by 12.9% in the first quarter of 2012 compared to the same period last year, based on figures from the French ministry of housing.

Although various commentators refer to 'the crisis' as the primary cause, it is more accurate to note that the withdrawal of the no-interest loan (PTZ) - aimed at first time buyers purchasing new-build properties - has had an undoubted effect on this sector of the market, since its withdrawal at the end of 2011. There are also signs that the buy-to-let boom, aided by policies such as the loi Scellier, bas slowed down. However many investors entered this sector without taking adequate precautions such as assessing the lettability of many new apartment bocks - only 50% even bothered to visit the site - and have been left with a property on their hands which is unlettable and probably unsaleable. The main reasons being poor choice of location, remote from public transport and other services particularly needed by tenants seeking low-cost rentals close to schools, shops and their place of work.

In another context, Standard & Poors predict a 15% drop in property prices during 2012. They are probably among the only people taking this view, and the Century21 property group talk more of 'price stability' for the next 12 months.

As always, the French property market is extremely varied. In my own region of Pyrénées-Orientales, there is a veritable construction boom south of Perpignan and in towns such as Argelès where new housing estates are appearing, specialising in individual high specification homes, built to the latest BBC norms.

Source: www.lefigaro.fr 24 April 2012

Rentals way ahead of inflation and salary rises

According to a report published this weekend by INSEE, one in five French people are spending more than 30% of their income on housing, making it their number one cost and up to 40% in the private sector, leaving those on the lowest wages (the French SMIC) with around 600 euros a month to spend on living costs after paying their rent. 

Particularly hardest hit are those living in rented accommodation, where average rents have risen by 17% between 2005 and 2010 - ahead of inflation at 8% and average wage and salary rises of 7.2%.

Source: LeParisien.fr Aurélie Lebelle 17 March 2012.