The French property market in 2025 is shaped by three key factors: mortgage rates, energy regulations and home-buying assistance schemes. Each has changed since January, and not always in the same direction. Assessing the scale of these changes helps put a purchase, rental or investment project in the context of current market conditions.
Mortgage rates, EPC ratings and PTZ: a comparison of changes in 2025
Three reforms that came into force this year directly affect how property projects are assessed. The table below summarises what has changed and when it applies.
| Measure | Previous situation | Situation in 2025 | Effective date |
|---|---|---|---|
| Zero-interest loan (PTZ) | Limited mainly to new-build apartments in high-demand areas | Extended to new-build houses in all geographical areas | 1 April 2025 |
| EPC ratings and rentals (G-rated homes) | G-rated homes could be rented under certain conditions | G-rated homes no longer meet the decency criteria for any new tenancy, renewal or automatic extension | 1 January 2025 |
| Holiday rentals (unclassified furnished properties) | More favourable micro-BIC allowance and threshold | Reduced flat-rate allowance and lower micro-BIC threshold (Le Meur Law of 19 November 2024) | Income received from 2025 onwards |
Each row in the table affects a different group: first-time buyers, long-term landlords and holiday-let investors. The key takeaway is that these changes do not all point towards looser rules. The PTZ has been expanded, while the tax treatment of short-term rentals has become stricter. Following Mon Projet Immo news can help you keep track of these trade-offs throughout the year.
PTZ extended to new-build houses: what this means for first-time buyers
Since 1 April 2025, the PTZ has been available to finance the purchase of a new-build house in any area. Households looking for a plot in a rural or suburban area now have access to a financing option that was previously unavailable to them.
The practical impact is on the financing plan. The PTZ covers part of the purchase price without accruing interest, reducing the overall cost of borrowing and improving the debt-to-income ratio presented to the bank. For a first-time buyer whose application was borderline, this extra headroom could tip the balance in favour of loan approval.
The change in geographical scope is the key point to remember. Before this date, less densely populated areas were largely excluded from the scheme for new-build houses. Construction projects outside major urban areas can now benefit from the same advantage.
Ban on renting out G-rated homes: implications for landlords
Since 1 January 2025, a home with a G rating on its EPC no longer meets the energy-efficiency standards required for decent housing. The ban applies not only to new tenancies, but also to renewals and automatic extensions of existing leases.
For landlords, the question is no longer whether energy-efficiency upgrades will add value to the property. Without renovation work, a G-rated home can no longer be rented out. The issue has shifted from profitability to legality.
Key points for affected property owners
- Check the date of the current EPC: an assessment carried out before the calculation method was revised may produce a different result under the new methodology.
- Plan ahead for F-rated homes, which will face a similar deadline in the coming years.
- In a co-owned building, insulation or communal heating work depends on a vote at the general meeting, which can extend timelines and limit individual owners’ room for manoeuvre.
The regulatory timetable is putting short-term pressure on the market for energy-inefficient homes. These properties often sell at a discount, but the cost of renovation work remains the key figure to calculate before buying or holding on to one.
Holiday rentals and the Le Meur Law: tighter tax rules for unclassified furnished properties
The law of 19 November 2024 changed the tax rules for short-term rentals of unclassified furnished tourist accommodation. The flat-rate allowance under the micro-BIC regime has been reduced, and the turnover threshold for qualifying for this regime has been lowered.
In practice, a property owner who rented out an apartment through a platform such as Airbnb under the micro-BIC regime will pay more tax on income received from 2025 onwards, unless they have the property classified as furnished tourist accommodation. Having the property classified is now a tax option worth comparing item by item.
Factors to weigh up before choosing a rental strategy
The comparison between long-term and holiday rentals needs to be recalculated. The net return from short-term rentals falls automatically with a reduced allowance, while conventional rentals retain their usual tax treatment.
Local authorities also have new tools to regulate holiday rentals, including limits on the number of permitted rental days and changes to planning rules. The profitability of an unclassified furnished rental now depends as much on national tax rules as on local regulations.
Property owners weighing up the two options should model the after-tax net return in both scenarios, factoring in management costs, rental vacancy and the potential cost of classification.
The property market in 2025 cannot be summed up by a single trend. The expanded PTZ opens doors, the ban on renting out G-rated homes closes others, and changes to holiday-rental taxation are reshaping the landscape for investors. The common thread remains the same: every project benefits from being recalculated using up-to-date figures rather than last year’s assumptions.
