The 'uberisation' of property in France?

There are increasing concerns in the newly fashionable 'sharing/caring economy' of the increasing 'uberisation' of homes - taken from the word Uber which is an umbrella organisation providing websites and services such as taxis and car sharing, and best known for its Airbnb network under which owners sublet their homes for periods of a weekend or just a vew days.

Opposition has already come from hoteliers faced with this new competition and the city of Paris suffering the loss of tourist taxes (now collected by Uber users), and more recently with owner/occupiers living permanently in apartment blocks and finding their lives disrupted by the comings and goings of extremely short-term renters.

It is against this background that the estate agency network Orpi and the polling organisation Ipsos have published a survey of trends relating to property occupation and ownership. Among the trends noted are:

- Growing popularity of apartment sharing ('colocation') particularly among the under-35s

- Growing trend of subletting a room in their apartment - either long term, short term or very short term (Airdbnb etc) and using the internet to market their availability

- Decline in popularity of second (holiday) homes, described as 'not a priority' by 88% of those interviewed

- Growing trend towards purchasing the main home ('résidence principale') - 54% of under 35s would like to buy

- A home office is now seen as essential by 62% of under-35s interviewed, taking over from the dressing room.

- Also popular is a large open-plan living area, with a kitchen offering an island unit and facilities for informal meals (breakfast bar).


Source LeFigaro 05/11/2015 FrenchEntree.com 06/11/2015

Buying a French property held by an SCI

The SCI is a French 'société civile' which is essentially not a trading company but one set up by a group of family members or friends to jointly invest in a property. Each member buys a number of shares in the SCI, with some shares confering different rights from others. Shareholders may dispose of their shares individually if they wish to retire from the SCI but the constitution of the SCI may be restrictive - for example, an obligation to offer the shares first to existing members of the SCI.

If as a property potential buyer you find a property for sale that is owned by an SCI it is essential to consult a Notaire as soon as possible (before making any binding commitment to purchase). The Notaire will examine the SCI to ascertain what its constituion says about selling the property to a third party and it is most likely that the consent of all the shareholders will be required. A Notaire acting for the SCI/vendor will deal with the distribution of the proceeds from a sale of the property between the shareholders, according to each one's share holding.

An SCI can be purchased or taken over, or created, should you wish to use an SCI as a method of (jointly) owning a French property, and as in all cases professional legal advice should be sought before you agree to buy. 

Buy-to-let - flat-sharing properties

If you own a sufficiently large French property, this morning's LeFigaro on-line has an interesting article about converting it to share accommodation, or 'co-location' , popular with young people including students.

The article describes an 'ideal type of property' based in the city of Orleans which cost around 500 000 euros to purchase, convert and equip and lists among the essentials, based on nine people sharing:
- a large kitchen/diner with sufficient fridge and storage areas and two hobs, with a total area of not less than 35m²
- a minimum of four bedrooms, each not less than 13m² minimim
- sufficient bath/shower rooms and WCs

In the example shown montly rentals were based on 350 to 420 euros per bedromm.

Source: LeFigaro.fr 12 October 2015

Floods in France

The recent floods along the Cote d'Azur have highlighted the problem of serious flooding in France. It is estimated that damage to homes, businesses and vehicles will cost at least 500 million euros in compensation. The French State has qualified the event as a 'natural disaster' and will pay for repairs to the infrastructure, including several highways and bridges.

One of the lessons learned is the relative lack of safety of (private) underground car parks, where several people drowned in attempts to bring their cars to the surface as the floods struck. Many had no alternative means of escape other than the exit ramp and no doubt new reulations will be introduced to improve safety in future.

Many parts of France are officially classified as at risk of flooding and when buying property you need to check the 'plan cadastral' and verif via the Mairie what kind of evacuation plan exists in case of emergencies.

Many Mediterranean towns and villages have however excellent systems for evacuating potential flood waters. In my own area of Pyrénées-Orientales some 140 000 or 40% of the population are regarding as living in a potential flood zone.

British living in France

Statistics about the numbers of British people fulltime residents in France are somewhat confusing, particularly when contrasted with the number of home owners - permanent and temporary.

According to a 2014 estimate by the French statistical office INSEE there are around 400 000 British resident in France - more than the 250 000 French living in the UK.

Other sources indicate that of France's 2.5 million second/holiday homes (10 per cent of the country's total housing stock) just 10% are bought by foreigners - of which British make up the largest single group (25%).

This percentage can be higher in some regions known for their attractions to incomers, including over 20% of homes are owned by foreigners. This figure can be distorted by even higher concentrations in some coastal (Mediterranean) resort areas, where second homes make up the bulk of the local property market, resulting in hundrds of apartments and villas which lie empty for ten months of the year, outside the July/August peak holiday season.

If you are searching for a permanent home and particularly if you are approaching retirement, you need to examine your chosen area carefully and if possible visit it both during and outside the season in order experience the practical effects of your lifestyle of their shifting population.

Furnished lettings

With the approach of autumn, now is the time to think about and to prepare for letting your property as a short-term furnished rental.

Short-term furnished rentals are designed for a minimum of twelve months (nine months in the case of a student rental) as opposed to three years for non-furnished rentals. You can also ask for a generous deposit against unpaid rent and damages, and a guarantee from parents.

There is an obligation (under the recent loi Alur) to provide a minimum of furnishings - including a bed and bedding; a hot plate for cooking; oven or microwave; chairs and dining table; basic cooking and eating utensils; adequate heating; sufficient and appropriate storage for clothes, books etc; and the tools to keep the rental basically clean.

You can advertise your property through local newspapers, student magazines (and/or get on their housing list), and specialist magazines such as LeBonCoin.

If you are considering letting a larger property you might considered letting it as a 'co-location', where each tenant signs the lease, and seek appropriate guarantees for example from parents.

The student rental market is relatively easy to enter as there is a shortage of university accommodation and those who do not live at home have to rely on the private sector. 

When does my property become my principal home?

If you decide to move to France and live permanently you should ensure that your French property is classified as your 'main and principal home' - if only to avoid paying capital gains tax if you decide to sell.

By declaring your presence and completing an annual French tax return, your new home will normally be accepted as your principal place of residence within 12 months of occupation. Any additional checks - for example, if you decided to sell within a few months of your arrival - might include checking electricity and water consumption, possession of a French driving licence and a 'Carte Vitale' which provides access to the French healthcare system.

French tax returns cover the period January to December and are issued in March/April for completion by the end of May/June. In your first year of arrival you should obtain the necessary forms from your local tax office (or perhaps the Mairie) and in future years they will be automatically sent to your French address. They can also be completed and submitted on-line.