HALF PRICE Subscribe to one of our French titles today CLICK HERE

Election fever grips France

16:39 30 March 2012

Closed for business? How will the election affect the market?

Closed for business? How will the election affect the market?

Karen Tait

As the election in France draws nearer, how will the property market be affected?

The election in France is fast approaching. President Nicolas Sarkozy, of the centre-right UMP party, is campaigning to be re-elected, but is facing stiff opposition from the likes of François Hollande, the socialist who, for many, is regarded as the frontrunner in the election. Another François, M. Bayrou of the MoDem party is seen as a threat too, while, Sarkozy will also be nervously eyeing the far right, where another challenge to him is coming from Marine Le Pen of the National Front.

Sarkozy is fighting to avoid being the first one-term incumbent since Valéry Giscard, who failed to be re-elected in 1981. And the timing could certainly be better for Sarkozy, with the two-round election (on 22 April and 6 May) following hot on the heels of the financial crisis and uncertainty in the eurozone.

But what of the French property market? How will this be affected by the election?

Peter-Danton de Rouffignac, who advises on buying and selling property around Perpignan (www.FranceMedProperty.blogspot.com), says: “Looking back at comments in the early part of 2007, several referred to the election and predicted that 2007 would be l’année de la rupture with a dramatic fall in property prices compared with 2006 and earlier. Some even talked of a 25% drop till 2010 – in the event there was an overall reduction of 3% in 2008 and 7% in 2009, followed by a recovery in 2010.

“In early 2007 there was more concern about interest rates and the policies of the European Central Bank, amid admissions that housing demand remained ahead of supply. This was before the US sub-prime crisis and the collapse of Lehman Brothers in September 2008 which precipitated our current situation.

“Coming to 2012, there is a feeling that everything is on hold until June, though nobody can justify why. There were around 783,000 sales in 2011 (Notaires de France). Athough a report by L’Observatoire crédit logement CSA (8 February 2012) states that electoral years always provoke a ‘wait and see attitude’ among purchasers, it also cites the ending of the no-interest loan (PTZ) on 1 January, general economic uncertainty and concerns about unemployment among the factors that might contribute to a slowdown in the market in 2012 .

“Interest rates remain stable, the report concludes, and ‘the loss of France’s AAA rating appears to have had little practical effect. At worst there might be a rise of 0.5 to 1%.

“It is hard to find a reason for the caution simply due to 2012 being an election year. The parties have announced their programmes, and on the question of housing there is nothing dramatic in any of their proposals.”

Peter goes on to point out that all the major electoral contenders have drawn up rafts of proposals to help the supply of housing in France meet demand. Sarkozy’s include an emphasis on new-builds, the existing programme to sell or lease redundant public buildings and land to create more space for housing, and a proposal to cap rentals. François Hollande has spoken of building more social housing, giving away public land for social housing, penalising communes that do not build social housing according to current government levels, and capping rentals.

François Bayrou (MoDem) talks of putting onto the market the 500,000 empty properties (“Although analysis shows that there is generally a reason why a property is temporarily empty,” says Peter), helping tenants of private landlords, and ‘financial initiatives’ towards building and improvement.

0 comments

More from French property

12:16
Make sure your builder has the correct insurance

To avoid building site blues and potentially costly repairs, make sure you’re aware of builders’ legal obligations in France

Read more
Tue, 16:34
Village of Estaing in Midi-Pyrenees © Freeartist / ThinkstockPhotos

Stunning scenery, pretty villages with traditional, reasonably priced properties, delicious food and a gentle pace of life... there are so many reasons why you should buy a property in Midi-Pyrénées in south-west France

Read more
Midi-Pyrenees
Tue, 11:52
Getting a French mortgage © BrianAJackson / ThinkstockPhotos

Find out what types of French mortgage are available, how much you can borrow, what the mortgage criteria are and how to apply for a mortgage to buy your French property

Read more
Tue, 11:33
Ibex near Lake Anncey ©Savoie Mont Blanc / Chabance

If nature is top of your French property wish list then you’ll be right at home in one of these five areas of France

Read more
Buying guides
Friday, July 22, 2016
Les Chalets de Flambeau, Val Cenis © Studio Bergoend - Annecy (74) - France

Summer is in full swing in the French Alps and leanding Alpine developer MGM French Properties offers its top property picks for the summer

Read more
French Alps
Wednesday, July 20, 2016
FPN August issue 306

In the August issue of French Property News, we examine the key issues and questions concerning Brexit, explore central France, offer top tips for learning French and suggest the best places for running gîtes

Read more
Tuesday, July 19, 2016
Midi-Pyrénées is famed for its beautiful villages

For many, having fun in the sun is a major reason of wanting to move to France. Here are 6 places you can be sure the sun will show up…

Read more
Monday, July 18, 2016
Welcome to the brand new French Property News app!

The new French Property News app is available to download now!

Read more
Thursday, July 14, 2016
Property for sale in Uzes at the French Property Exhibition in September

These stunning French properties are all available at the French Property Exhibition at London’s Olympia 16-18 September – make sure you visit to find your dream home in France

Read more
French property for sale
Tuesday, July 12, 2016
Hotel-restaurant in Turenne, France © Emma Rawle

If you’re planning to set up a business in France then you need to understand the micro-entreprise (formally auto-entrepreneur) tax regime and how it can help you run a business

Read more
Running a business

Most Read

Newsletter Sign Up

Sign up to the following newsletters:

Our magazines

Living in France

Find valuable information, expert advice and real-life experiences to help you with all the practicalities of living in France. Topics covered include; working in France, retirement, healthcare, tax, finance and education.

Read more

Holidays

Find news, offers, information and advice on all aspects of taking a holiday in France, including information on travel, destinations, getting there and more.

Read more