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