Pres­i­den­tial prom­ises

Living France - - The Essentials - legget­tfrance.com; home-hunts.com; knight­frank.com

The elec­tion of Em­manuel Macron as pres­i­dent of France is good news for the French prop­erty mar­ket, ac­cord­ing to lead­ing es­tate agents.

The pro-EU leader’s man­date in­cludes sev­eral poli­cies that are likely to boost the ris­ing de­mand for French prop­erty, in­clud­ing cut­ting cor­po­ra­tion tax, sim­pli­fy­ing rental con­tracts and elim­i­nat­ing taxe d’habi­ta­tion for the ma­jor­ity of house­holds.

Chair­man of Leggett Im­mo­bilier, Trevor Leggett says that if im­ple­mented, Macron’s plans will have a wide-reach­ing ef­fect. “Do­mes­ti­cally peo­ple will feel en­cour­aged to in­vest in prop­erty, the self-em­ployed will find it eas­ier to get a mort­gage and cor­po­ra­tions will want to bring their busi­nesses to France,” he said. “In­vest­ment buy­ers will take real heart in the pres­i­dent’s wish to re­tain a strong and uni­fied Europe. Buy­ing their own lit­tle par­cel of France will be a real goal for many from the UK.”

As well as prop­erty tax, Macron’s plans to re­duce the wealth tax could also af­fect buy­ers at the top end of the mar­ket, ac­cord­ing to Mark Har­vey, head of the French res­i­den­tial team at Knight Frank.

“Per­haps the top ques­tion among sec­ond home­own­ers in France and those look­ing to buy, re­lates to the coun­try’s wealth tax which Macron has promised to re­view. While I ex­pect to see some changes I do not be­lieve these will be sig­nif­i­cant for sec­ond home­own­ers in France,” he said.

Macron’s ad­min­is­tra­tion may also look at the af­ford­abil­ity of prop­erty in Paris, where homes are be­com­ing in­creas­ingly un­af­ford­able for lo­cal peo­ple, but Har­vey in­di­cates the new leader may have his work cut out on this front.

“While Macron may ini­tially be tempted to tar­get empty or for­eign homes in Paris it is clear the mea­sures in­tro­duced so far by both the city and the French state have back­fired and fall short of ad­dress­ing the ac­tual phys­i­cal short­age,” he ex­plained.

What­ever chal­lenges the French prop­erty mar­ket faces, di­rec­tor of Home Hunts, Tim Swan­nie says that Macron is “the right man for the job”, and thinks the French prop­erty mar­ket will con­tinue to im­prove un­der his lead­er­ship.

“The prop­erty mar­ket has been im­prov­ing through­out France for the past cou­ple of years and his gov­ern­ment will want to build on this,” Swan­nie com­mented. “Macron is com­mit­ted to re­duc­ing some of the taxes for prop­erty own­ers and sim­pli­fy­ing the fis­cal frame­work in France.”

How­ever de­spite the pos­i­tive mood that is build­ing, it must be re­mem­bered that the re­sults of the elec­tions are only just be­gin­ning. Pres­i­dent Macron faces a chal­lenge to se­cure a ma­jor­ity in the par­lia­men­tary seats, without which he might not have the power to im­ple­ment his plans, as French fi­nan­cial ex­pert Ro­man Carel ex­plains:

“In order to carry out any of these poli­cies, Macron will need a ma­jor­ity win of seats in the Assem­blée na­tionale dur­ing the leg­isla­tive elec­tion on 11 and 18 June,” ex­plains Carel. “Once this elec­tion has hap­pened, France’s fu­ture will be­come much more clear.”

But for now, es­tate agents seem con­fi­dent in the French prop­erty mar­ket un­der Macron’s rule, and Tim Swan­nie says the fu­ture looks bright un­der the 39-year-old’s di­rec­tion. “France now has a strong and dy­namic leader,” he said. “We are ex­cited about a bright fu­ture for France and for the French prop­erty mar­ket un­der his lead­er­ship.”

Macron’s vic­tory could help boost the French prop­erty mar­ket

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