It is a blow to the control of rents in Paris, which sets a maximum rent to contain the increase in rents. An administrative court ruling on July 8 has just partially overturned rent control in Paris. This cancellation, however, does not concern all leases but only those stipulated between 1 July 2019 and 30 June 2020.
No analysis after 2017
The National Union of Owners, UNPI, had asked for the cancellation of the decree of 23 May 2019 that sets the reference fees in Paris, due to the failure to comply with article II of article 140 of the Elan law, reporting an insufficient study of the structure of the rental market in Paris. The administrative court agreed with him by canceling the 2019 decree as the acts produced by the prefect “do not include an analysis of the structure of the rental market in the territory of the municipality of Paris after 2017, which would make it possible to determine in a sufficiently precise manner the categories of housing and geographical sectors to set the reference rent there“.
Second plea advanced by the Administrative Court of Paris: in July 2019 the report of the Local Observatory of the Parisian agglomeration rents, OLAP, was published on the evolution in 2018 of the residential rents of the private rental sector in the Parisian agglomeration, i.e. a date subsequent to that of the decree of 23 May 2019.It does not appear from the documents in the file that OLAP observed the structuring of the Paris rental market before the prefect issued the contested order. Consequently, the argument relating to a procedural defect must be accepted., underlines the Administrative Court. “The decree was therefore based on data that did not exist, which creates confusion», Notes Alain Cohen-Boulakia, associate lawyer of SVA Avocats, who defends the UNPI.
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UNPI President Christophe Demerson reacts to this court decision: “This decision is good news. It supports the fight we have been waging for several years and brings to light the legal abuses that have been carried out.This judgment has practical consequences for Alain Cohen-Boulakia: “All landlords who have signed a lease agreement, between 1 July 2019 and 30 June 2020, at a different price from the one listed, and who have not complied with the law are exonerated.“, He assures.
It is therefore a victory for the UNPI but “it is not a revolution, since it is not the decree itself that has been canceled but a decree, that of 2019. The decree of 2020 and that of 2021 have not been canceled“, Nuance Maître Romain Rossi-Landi, lawyer in real estate law. It remains to be seen whether the UNPI will appeal for the 2020 and 2021 decrees and whether the state will appeal for the 2019 one. Case to follow.
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