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Reading Note- "The Rent Control Controversy"

by Anne Clerval and Cécile Vignal, published in Espaces et Société (2026)

As the experimental rent control scheme comes to an end in November 2026, this reading note reviews an article by Anne Clerval and Cécile Vignal, published in Espaces et Société (2026), which explores the "controversy" surrounding this policy.

Rising rents are not a new phenomenon in France or elsewhere in Europe. Between 2010 and 2024, Eurostat recorded a 22% increase in housing rents across Europe, with a particularly sharp rise beginning in 2020.

To curb this trend, several countries and regions have introduced rent control measures:

  • Germany: In Berlin, strong mobilization by tenants' associations led to a five-year rent freeze, but the measure was struck down by the Constitutional Court in 2021.
  • Netherlands: A law passed in 2021 limits rent increases to 1% above inflation for five years.
  • Spain: In Catalonia, a housing law that came into force in 2023 allows rent regulation in 140 municipalities, including shared housing and temporary rental agreements.
  • United Kingdom: Adoption of the Renter's Rights Act (2025), introducing open-ended tenancies and strengthening protections against evictions.
  • Belgium: Since May 2025, Brussels has implemented a rent control system inspired by the French model.

In France, annual rent increases have been indexed to the Construction Cost Index since 1989. Since 2012, this indexation has also applied to new leases in high-demand housing areas.

In 2014, the Alur Law introduced an experimental rent control scheme in the city of Paris. In 2018, the Élan Law extended the program to other volunteer cities and metropolitan areas, including Lille, Bordeaux, Montpellier, Grenoble, and others. The French Parliament made this experiment permanent in December 2025.

According to a study by the Paris Urban Planning Agency (Apur), rent control effectively moderated rent increases in Paris between 2019 and 2024 (Breuillé et al., 2023).

Despite these findings, some economists continue to criticize rent control, arguing that it reduces the supply of rental housing and discourages property maintenance. Similar arguments had already been made against the September 1, 1948 Rent Control Law, which imposed strict rent regulations. However, the work of sociologist and historian Christian Topalov demonstrates that the housing crisis was not caused by this legislation itself, but rather by the private housing production system—particularly the rentier model—which was structurally incapable of providing adequate housing for everyone.

Nevertheless, rent control alone is insufficient to solve the housing crisis. It must be complemented by policies that support the supply of long-term rental housing, as the traditional rental market faces increasing competition from short-term tourist rentals, medium-term leases, and coliving arrangements.


References

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