France: New energy regulations to impact rentals of poorly performing homes

From the start of 2025, owners of properties with poor energy efficiency ratings will be required to take their homes off the rental market until renovations bring them up to standard.

New energy regulations set to come into effect in 2025 will significantly impact rentals of properties in France with low energy efficiency ratings.

Specifically, rentals of properties with a G energy rating—the lowest on the diagnostic de performance énergétique (DPE) scale—will be prohibited. Further restrictions on F- and E-rated properties will follow in 2028 and 2034, respectively. The 2025 ruling alone is estimated to affect 600,000 properties.

Energy performance certificates (EPCs) are mandatory for all properties sold or rented in France. These certificates evaluate energy efficiency on a scale from A (the most efficient) to G. Since 2021, EPCs have been legally binding, meaning buyers or tenants can seek compensation if a property does not meet its stated energy performance.

Owners of G-rated properties will now be required to fund upgrades and renovations to improve their ratings. These works may include installing new or improved windows, upgrading heating and cooling systems, or adding more efficient insulation. A new DPE certificate from a certified property inspector will be required following the completion of the works if the owner wishes to put their property back on the rental market.

For more information on the DPE rules, click here.

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