The year 2025 marks a major turning point for rental housing in France. Between new energy regulations, tax changes, and reforms to incentive schemes, both landlords and tenants must adapt to a rapidly evolving landscape. This article guides you through the main changes to be aware of in order to navigate the current rental market with confidence.
Ban on Renting G-Rated Properties: A Reality in 2025
Since January 1, 2025, it is forbidden to rent out a property classified as G under the Energy Performance Certificate (DPE). This measure, stemming from the Climate and Resilience Law, aims to improve the quality of the French rental stock by gradually phasing out energy-inefficient properties. Landlords are thus required to carry out energy renovation works to remain in the rental market. The ban is accompanied by penalties and procedures that must be anticipated.
Understanding the DPE and Its Implications
The Energy Performance Certificate, or DPE, is an essential tool for assessing a property’s energy consumption and greenhouse gas emissions. It rates properties from A (very efficient) to G (extremely energy-consuming). In 2025, a G-rated property can no longer be rented. This rating therefore directly impacts a property’s rental eligibility, market value, and the requirement for renovations. Landlords must ensure their DPE is valid and prepare for inspections.
Solutions for Owners of G-Rated Properties
For owners affected by the rental ban, solutions do exist. The main one is to undertake energy renovation work, partially financed by various aids. Priority interventions focus on insulation (roof, walls, windows), ventilation, and heating system replacement. It is essential to consult a professional to carry out an energy audit and establish a coherent renovation plan. Optimhome can support landlords in this process.
Furnished Rental Taxation: What Changes in 2025
The taxation of furnished rentals has been modified by the 2024 Finance Act and takes full effect in 2025. The goal is to better regulate short-term rentals, especially tourist-type accommodations like Airbnb, to stabilize the traditional rental market. Tax deduction rates have been reduced, income thresholds lowered, and reporting obligations strengthened. This directly impacts non-professional furnished landlords (LMNP), who must adapt their strategy.
New Deduction Rates and Income Thresholds
In 2025, the tax deduction on income from classified furnished rentals drops from 71% to 50%, while that of unclassified furnished rentals falls to 30%. Additionally, the revenue ceilings to benefit from the micro-BIC scheme are lowered, making this regime less attractive. It is crucial for landlords to reconsider their rental management approach and possibly switch to the actual expenses regime to optimize taxation.
End of the Pinel Scheme: What Alternatives in 2025?
The Pinel scheme, which allowed investors to benefit from a tax reduction in return for renting a new property under certain conditions, ended on December 31, 2024. In 2025, investors must turn to other mechanisms to maximize rental profitability. This end reflects a desire to focus public support on more socially and environmentally effective schemes.
Presentation of the Loc’Avantages Scheme
Loc’Avantages is a scheme offering tax reductions to landlords who rent below market prices to tenants meeting income conditions. The goal is to increase the supply of affordable housing while maintaining a certain level of profitability for landlords. This scheme can apply to older properties, provided they meet certain energy performance standards. It is an attractive solution for investors looking to combine profitability with social commitment.
Other Available Schemes and Aids
Beyond Loc’Avantages, other options remain available to investors. The LMNP status allows the rental of furnished properties while amortizing their value, which can be tax-efficient. The Denormandie scheme, focused on renovating older city-center properties, also offers significant tax reductions. Some local authorities offer targeted financial aid or tax advantages to encourage property rehabilitation. The key is to align one’s choice with the location, property type, and target tenant profile.
Rental Market in 2025: Trends and Outlook
The rental market in 2025 is marked by strong regional disparities, sustained demand in certain metropolitan areas, and growing interest in renovated, energy-efficient properties. Tense areas are becoming more attractive again, especially as many workers return to well-connected urban centers. Investors must rely on solid local analysis to identify the most profitable opportunities.
High-Potential Geographic Areas
Certain mid-sized cities and regional metropolises are standing out thanks to a strong balance between economic dynamism, accessibility, and quality of life. This is particularly true for Rennes, Angers, Bordeaux, and Montpellier. These areas attract young professionals, families, and students, making them prime targets for rental investment. Analyzing urban projects, transport networks, and local demographic changes is key to anticipating increases in property value.
Most Sought-After Property Types
In 2025, the trend favors functional, well-insulated housing adapted to new lifestyles. T2 and T3 apartments remain highly desirable, particularly in major cities. Coliving is also on the rise, as are student housing and senior residences. Detached houses with gardens continue to appeal in suburban areas. Renovated or new properties with good DPE ratings are especially valued on the rental market.
Role of Optimhome Real Estate Advisors in This New Context
In a context where regulations are evolving rapidly and decisions must be informed by strong local market knowledge, the role of the real estate advisor becomes central. The Optimhome network supports property owners, landlords, and investors at every stage of their rental project, offering expertise, responsiveness, and personalized solutions.
Conclusion
The year 2025 requires significant adaptation for rental market players. Between energy obligations, revised taxation, and shifts in supply and demand, the rules of the game are changing profoundly. For property owners and investors, the challenge is to stay informed and get the right support to turn these constraints into opportunities.
Key Takeaways:
G-rated properties are now banned from the rental market.
Furnished rental taxation is less advantageous than before.
The Pinel scheme has ended, replaced by alternatives like Loc’Avantages.
The rental market remains promising, particularly in dynamic mid-sized cities.
Support from an Optimhome advisor is a major asset for optimizing your project.
Do you have a rental or real estate investment project? Don’t wait—contact an Optimhome real estate advisor. With local expertise and deep knowledge of new regulations, they will guide you step-by-step toward the success of your rental project.
FAQ
Can you still rent an F-rated property in 2025?
Yes, but only until January 1, 2028. From that date, F-rated properties will also be banned from rental. Moreover, their rent can no longer be adjusted based on annual indexation.
What renovations improve a property’s DPE rating?
The most effective works are thermal insulation, heating system replacement, installing a ventilation system (VMC), and window replacement. However, it all depends on the specific needs of each property, identified during the energy audit.
Is the Pinel scheme still available in 2025?
No, it was discontinued at the end of 2024. Other schemes like Loc’Avantages have taken its place.
Is it still worthwhile to invest in furnished rentals?
Yes, but the tax regime must be carefully analyzed and the new legal obligations respected.
Why work with an Optimhome real estate advisor?
To benefit from expert support tailored to your project, along with deep knowledge of the local market.
Author:
Sandrine Hammann
Rental Management Expert, I support you by providing practical advice and useful information to help you increase the profitability of your real estate investments.
My goal: to give you clear answers so you can optimize the management of your properties with confidence.
