France plans high-rent tax to protect poor tenants

French property owners are under fire to reduce lettings prices after the government announced plans to introduce a levy on rents on small apartments considered unfair from 2012.

Secretary of state for housing Benoist Apparu said the “dissuasive” tax on overly high rents in France would come into place in January.

The levy will be at a rate of 10% to 40% for properties with rent in excess of €40 per square metre. The average rental price per square metre in the Paris is €23.

Around 50,000 apartments in France, mainly in the capital, would be affected, said the ministry. The idea is to end current abuse by property owners for young people, students and poor workers, it added.

Source: OPP.org.uk